[OP Ed. Note: This Editorial Was Drafted Without AI]

Yo Pit Crazies,

Yeah, I’ve got beavers in my neighborhood, and they’re making a mess of my neighbor’s pond. This market’s kind of like that tree. We get a head of steam on some good news and then… timber!

No rally lasts. Why is that when so many good things are happening? Keep reading!

It’s one thing to be a good businessman, like Bill Gates just grabbing stuff and building Microsoft with Paul Allen and, later, Steve Ballmer.

It’s one thing to be a financial impresario like Carl Icahn or Kirk Kerkorian.

It’s another to be a tech wizard like Steve Wozniak, who founded Apple Computer with Steve Jobs.

And let’s not forget marketing. Not many people market themselves better than President Trump. Love him or hate him, he gets his name out there.

But it’s another thing entirely when you do all four well. I have to give Elon Musk credit: he’s pretty darn good at all four. He’s got me believing SpaceX can hit $1 trillion in revenue barely two years after going public.

SPCX 3 Month Chart

On Tuesday’s earnings call, Musk said SpaceX’s annual recurring revenue (what the business would bring in over a year at its current pace) could land somewhere between $500 billion and $1 trillion by the end of 2027. That night he went on X and said $1 trillion in revenue in 2028 is “no longer impossible.” For scale, SpaceX did $14.6 billion last quarter, and the top of Musk’s range would put it ahead of Amazon and Walmart.

SpaceX (SPCX) dropped more than $100 from peak to trough this year, from around $226 to around $105. It’s clawed back about half of that, closing near $159 on Wednesday after a 7.8% pop.

The whole company’s worth about $2.1 trillion, so it trades at roughly 2x Musk’s top-end revenue number. I could say the stock’s cheap, or at minimum fairly priced. I just have to believe Mr. Musk when he puts his Donald marketing cap on.

Still, upside is what stocks live on, and $1 trillion in revs gave the market what it needed on Wednesday.

Even with that, we can’t break out. And we won’t.

Too Many Open Items Before the Election

Like I’ve said here many times, there are too many open items in the short term for the SPDR S&P 500 ETF Trust (SPY) to make new highs.

SPY 2-Day Chart

We’re close to new highs for a reason (see the SPCX stuff). The S&P 500 closed at 7,757 on Wednesday, about 1% under the record it set earlier this month.

But the election, Iran, rates and spending are all still hanging out there, and the Fed meets next week. Close just one of them and we get up there. Until then, we’ll orbit SPY at a higher volatility through Nov. 3.

I got into that in today’s X Factor seminar session. There’s still room to check it out. I hope you’ll be there tomorrow.

I hope this was helpful,

AG