Welcome to The Alpha Report 👋

You only have to get rich once. Now is your time.

Major News Today:

• Tesla rebounds (I closed out the puts for a nice profit)

• SP500 & Nasdaq continue the correction down.

• Prime example of newbies buying high and selling low again.

• 30 year fixed mortgage up slightly to 7.10% from 7.08% yesterday.

• 10 year treasury bond yield unchanged @ 4.44% from yesterday.

Million Dollar Lesson:

Making money through an early lucky trade is the worst way to win. The bad habits that it reinforces will lead to a lifetime of losses.

Is The Bubble Popping?

Here Is My Thought Process👇

• I’ve been saying for months we’re lofty and we need a dip.

• I am happy things are taking a breather.

• If the market runs up too much, the pop on the way down will be extreme.

• Also keep this in mind, QQQ is $500/share right now.

• If I assume a 11% annual return for 20 years, the non split adjusted price per share of QQQ would be $4,511.

• So everything is noise.

• If it dips to 400, I won’t care. I’ll buy more.

• I have my eyes in the future at $4500+

• Being patient will reward you.

• The plays I do in the meantime help me acquire more shares to have as many as I can.

• I want to keep stacking shares.

• Also, remember how I said the market ran up a lot and making short term bullish plays is risky, this is why. The rubber band analogy is playing out right now. Market needs to take a breather.

Trump May Have Rugged Elon & Tesla

• Rumor has it that Trump is cutting the $7,500 tax credit.

• I think this is bad for Tesla for the short to mid term.

• Most people compare EV vs EV with regards to the tax credit.

• That's not the competition.

• It's Tesla vs EVERYONE (gas & EV)

  If someone is considering buying a new car, understand this comparison:

• Tesla with $7,500 credit $45k

• Tesla without $7,500 credit $52.5k

• Other gas car with no EV credit $45k

• Ppl will buy they cheaper car, wether it is gas vs EV.

• So no EV credit will lose the sale.

• If you think otherwise, you are bias.

  KEEP IN MIND, MY 2030 PRICE TARGET IS $1,200. BUT IT WILL BE BUMPY.

  

Potential New Trades:

• Google 1 yr+ play (buy calls/sell puts)

• Amazon long term play 3+ yrs (sell puts/buy shares)

• Nvidia on dip (Buy Shares)

• SOXX long term play 3+ yrs (buy shares/sell puts)

KEEP IN MIND, I MAKE ABOUT 2 TRADES EVERY WEEK.

IT IS ALL POSTED IN REAL TIME IN PREMIUM DISCORD.

THEY HAVE BEEN PRINTING!

BELOW IS MY ROI OF MY TRADING ACCOUNT SINCE 2023.

TOTALLY DOMINATING THE MARKETS.

Current Valuations & Price Targets

• The S&P 500 (Ticker: VOO) at a PE ratio of about 22 right now, we are a little lofty. (But not crazy expensive) BUT, rates are expected to fall and I agree with the expectations. Rates are like gravity on the market. If rates fall, stocks become the only game worth playing, which will push up valuations.

• The Nasdaq 100 (Ticker: QQQ) at a PE of 31 is a tad lofty also.

• Rates are gravity. We are currently at 4.75% fed funds rate now. We are expected to be at 4 in a year. 1% is a decent cut and that will make a difference.

2025 QQQ Price Prediction End of Year: $530

2025 VOO Price Prediction End of Year: $580

Tip of The Day:

Always know what you are investing in and why.

Do not just buy into something cause it’s going up in price!

Current Value of My Trading Account:

• The market took a breather today.

• It is much needed and healthy!

• I think we are about 5-10% over valued, so this perfectly fine.

• So I consider the intrinsic value of my trading account to be somewhere around $800k, not $861k.

  

Final Comments:

• The market continues to dip today, and this is much needed.

• I see the market at 5-10% over valued.

• Tesla volatility continues.

• Keep your emotions in check on pumps and dumps.

• Continue to DCA into quality stocks/ETFs at good prices.

• When you find undervalued companies, use options to magnify gains

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