BY ANDREW GIOVINAZZI
March 4, 2024
Yo Pit Crazies,
Friday’s are a thing. It is almost like folks want to jump in before Monday the following week.
This is very different from 2022 when “Weekend Risk” out of Ukraine or any other issue kept folks on the sidelines by Friday afternoon.
Weekend’s are for AI news now!
I sold some SPDR S&P 500 (Ticker: SPY) calls Friday 2 min before I boarded my flight to close another win for OP Mentoring.
It was a Friday and I wanted to hold calls as long as I could.
That is a strong bull market.
So what is curious is the relative performance of the two stocks below. In a raging bull market, this should not be happening.
But it is.
In my opinion, a changing of market leadership is happening
Apple Inc (Ticker: AAPL) is the blue line and Tesla Inc (Ticker: TSLA) is the candle line.
After a somewhat disappointing earnings performance, TSLA is clawing back from Feb lows.
AAPL essentially is showing the performance of a widely held market leading stock slowly falling out of favor.
Tim Cook is not Steve Jobs and AAPL has had 0 innovation since Jobs died but he left an impressive cash machine.
TSLA will slowly remake itself into an AI company with robots and software that happens to make cars.
AI already has been in development to make the self- driving car so TSLA is early in this space and I believe a key driver in why folks love the stock.
I am finally admitting to myself TSLA is a tech company that happens to make cars.
I am a little late to the party.
TSLA 3 month chart with AAPL in blue
I will keep looking for long opportunities in my products for TSLA but I am biting the bullet and adding shares with the long backspread.
The money going into AI stocks is leaving AAPL but it is no longer leaving TSLA.
Traders are voting that the AI potential ain’t in the golden AAPL for now..
Mark’s Trade Zone is a great way to learn to trade this idea. There is still room to sign up.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain