Trade Brief – taking profit in BRK-B
Taking profit in BRK-B as I foresee volatility ahead. Buying SPY with the proceds.
Trade Brief 22nd October (AAPL, META, TSLA, BRK-K)
Reviews for the iPhone duo look mixed in a good way for investors. Planning to take profit in BRK-B. Book up 8.0% 620bps behind SPY.
Trade Brief 21st October (RTX, GM, SPCX, NFLX)
RTX doesn’t have a demand problem. GM could help them with supply, but would be better served reducing their own chip needs. If my family is typical (unlikely) it can explain NFLX subscriber counts. Book up 7.7% 600bps behind SPY.
Trade Brief 20th October (SPCX, AMZN, NVDA)
What is Elon Musk planning at SPCX earnings? AMZN puts the squeeze on CRWV. Book up 7.2% 610bps behind SPY.
Trade Brief – Buying EZU
Buying EZU as regulation in Europe looks set to become more growth friendly, just as regulation in the US could start to hold back AI.
Squeeze Play
With private capital at a premium, tech CEOs may try to squeeze DC for help. Increased regulation could be the cost. Meanwhile Europe is being squeezed by Chinese competition. Relaxed regulations may be its only play.
Trade Brief 16th October (KO, CRWV, NKE)
KO seemed to get a win yesterday, but the market ignored it. How can CRWV’s cost of capital be falling when their bonds yields are surging? Book up 7.4% 670bps behind SPY.
Trade Brief 15th October (MS, BRK-B)
MS talked of AI capex reaching a plateau, and that financing is the new bottleneck. That is good for BRK-B, which could be adopting a new strategy towards acquisitions. Book up 7.3% 650bps behind SPY.
Trade Brief 14th October (Oil, TM, Banks)
The UK did blame Irans hybrid warfare for Fairford. Toyota is taking a hybrid approach to humanoids. Bank earnings might be more durable than the market expects. Book up 7.5% 750bps behind SPY.
Trade Brief 13th October (Hybrids, KSA)
We got some clarity on the EU/China hybrids deal, and I had the wrong counterfactual, but the conclusion is largely the same. Book up 7.4% 760bps behind SPY.
