SocGen notes that Tech has one of the lowest PEGs..
Source. SocGen
Avis Budget Group ($CAR) could experience another extreme short squeeze similar to 2021, when the stock surged 722% in 41 days before collapsing 54% in a week.
Fast forward to 2026 and $CAR - Avis Budget - is up 656% in a month!!! The US government shut down. Airport security workers stopped getting paid. Thousands quit. 4-hour queues. Passengers abandoned flights. Road trips surged. Add a massive short squeeze and you get a 600% move. So what's going on? ---------- In 2021, the surge was driven not by fundamentals but by market positioning. At the time, Avis was heavily shorted because many investors viewed it as weaker than Hertz—citing valuation concerns, exposure to used car price volatility, and a less attractive balance sheet. Meanwhile, a popular hedge fund strategy involved a pair trade: long Hertz (fresh out of bankruptcy with an EV narrative) and short Avis. This created a crowded short position. The situation reversed when Avis delivered a strong earnings surprise and broader industry news (including Hertz-related developments) disrupted expectations. As the stock price rose, short sellers faced mounting losses, margin pressure, and forced liquidations. Since closing a short requires buying the stock, this triggered a feedback loop: rising prices forced more short covering, which pushed prices even higher. This self-reinforcing cycle—not fundamentals—drove the explosive rally. Once most shorts had exited and buying pressure faded, the stock rapidly collapsed. Today’s conditions—crowded positioning, limited float, and market structure—mirror that setup. If similar dynamics unfold, prices could again detach from fundamentals and rise sharply due to forced buying rather than intrinsic value. Source: Bull Theory
The Psychedelics ETF $PSIL has destroyed its daily volume record in first 30min of trading...
Why ??? Trump just signed ex order expediting research/access to psyche drugs to cure depression. The sector has been in dog house, waiting for catalyst, up 10% today. Watch this space. Source: Eric Balchunas
The current bull market is 3.5 years old and up 99.2%. As we've noted many times, once bull markets get past their third birthday they rarely end anytime soon.
Source: Over the past past 50 years, 5 made it past their 3rd birthday and those lasted eight years on average".
THE WHITE HOUSE BASKET (aka "Don't fight Trump") is massively outperforming the S&P 500
Don't fight the Fed, or the White House Investing alongside Trump's tweets and White House moves ("White House basket") has returned about 75% since the start of his term, versus roughly 20% for the S&P 500, led by Intel and USA Rare Earths, found @psarofagis. Note: Tuttle has been trying to ETF-ize this strategy in the Government Grift ETF but no exchange will list it because it too controversial (?) Source: Eric Balchunas on X
WHEN SPACEX IPOs, THESE ARE THE STOCKS THE MARKET WILL CHASE NEX
Source: Justin Banks
The S&P 500's CAPE Ratio has moved up to 40, its highest level since 2000 and now above 99% of historical valuations. $SPX
Source: Charlie Bilello
The power of the AI trade...
While Taiwan’s $977 billion economy is less than a quarter of the UK’s $4.3 trillion, last week Taiwan overtook the UK in stock market capitalization at $4.14 trillion, making it the world’s seventh largest, according to data compiled by Bloomberg showing the combined value of companies with a primary listing on the island. The UK’s market was valued at around $4.09 trillion. Source: Bloomberg, Neil Sethi
