July 11, 2025

 

(THE NASDAQ COULD POWER AHEAD)

 

July 11, 2025

 

Hello everyone

 

THE CHANGE COMING TO TESLA

How do you feel about a bit of Grok in your Tesla??

What does that mean, you might ask?

It means no longer needing to rely on GPS to tell you where to go or needing to look at your phone to find the nearest gas station or best tacos (if that’s your fav. Meal) in your area.

You’d simply ask the car – and it would answer you in moments.

Pretty freaky, isn’t it!  No other car in the world has built-in LLM technology – and it could change the way we drive forever.

 

CATHY WOOD’S TESLA PRICE TARGET

Wood’s sees Tesla reaching her target of $2,600 within five years.  She bases this price on Tesla’s robotaxis and the Optimus humanoid robot which should drive the next leg of growth for the EV giant. 

 

BITCOIN REWRITES HISTORY

Bitcoin is rallying again today, making a record high.  Last I checked it was sitting at just over US$118k.

For those who have held on – congrats.  Remember, it’s the accumulation stage – that irritating sideways movement that everyone hates – where the foundations are built to launch from. 

The latest leg of the rally appears to be driven by a combination of continued exchange traded fund (ETF) inflows, strong on-chain activity and renewed institutional interest, particularly in the lead-up to expected Fed rate cuts Q3 (that’s not a guarantee).

Additionally, trading behaviour reflects many investors have been trying to get their foot in the door.

Global BTC spot trading volumes surged 23.6 per cent overnight, topping US$51.7 billion in 24-hour turnover.

There is still fuel left in this rally.

Support is now at the previous breakout level of US$113,000, with resistance sitting at US$120,000, followed by US$128,500, a key Fibonacci extension level based on the last macro swing.

If you want to consider investing in another coin, I suggest Ethereum.  It’s up 7.23 per cent on the day.  Its long-term target = US$10,000.

 

IS THE NASDAQ MIRRORING THE 1990’s?

The Nasdaq is the best-performing index in 2025; it has roughly doubled from its low in late 2022.  Data Trek Research co-founder Jessica Rabe argues that there are plenty of reasons to assume that this rally won’t end the way the dot-com bubble did a quarter century ago.  Valuations are more reasonable, and profits are stronger.  Rabe notes that the Nasdaq continues to track its mid-1990s bull run using 1995 and 2022 as starting points.

In 1995, the Federal Reserve shook the market by taking up interest rates quickly after a low-rate environment had prevailed, which is similar to the picture we had in 2022. 

Both years brought enthusiasm about disruptive technology.  Both Amazon.com and eBay were founded in 1995, the year that Microsoft launched Internet Explorer and Windows 95 and Netscape went public.  Chat GPT emerged in November 2022, just about a month before the market low.

If we look at the charts following the start of 1995 and the Nasdaq’s low on December 28, 2022, Rabe points out that it shows that the index “has followed its mid-1990s experience to a truly remarkable degree, including both its upward trajectory and occasional pullbacks over the last two and a half years.”

Interestingly, on Thursday, the 632^nd trading day from the Nasdaq’s 2022 low, the index had gained 102% since then.   Let’s jump back to the nineties, where we see in July 1997, the index had risen 91% from the start of 1995. 

So, let’s say that pattern holds – Rabe argues the 1990s playbook suggests that the Nasdaq could continue to climb, rallying to the tune of 15% to 20% through the middle of October.  And from there pullbacks might be interspersed with gains.

In 1997, the index went on to rally 21% in the 70 trading days beginning in July before pulling back 14% through the start of 1998 due to the Asian financial crisis. It then recovered, jumping 28% between mid-January and April.

Rabe doesn’t believe another bubble is poised to pop.  She is bullish on Big Tech in general.  She notes there is a strong labour market, easing worry about tariffs, and potential for a rate cut (though I wouldn’t hold your breath for that).  Furthermore, she points out that the U.S. tech giants stand to benefit greatly from helping to unleash AI’s revolutionary power.

Let’s not forget, though, that bull markets driven by disruptive technology always have land mines and challenges in front of them.  Growth scares, policy uncertainty, valuation concerns can be confronting for investors, forcing some to stay on the sidelines and missing out on capital growth. 

Look over the horizon when investing; ignore the day-to-day gyrations in the market – it will wear you out and take you out of the market, and then some institution will get your stock at a great price from you selling on a down day. 

Rabe believes Big Tech is still “early in a secular bull run, driven by monetization opportunities around gen AI.”

Many other firms are just as bullish as Rabe about AI and tech in general.

 

TRADES CORNER UPDATE

Silver (SLV)

On June 9, 2025, I recommended silver (SLV), when it was priced at $32.68.

And I also suggested:

(SLV) 33/35 out of the money bull call spread.

Expiration: Sept 30, 2025

Max Profit: 131

Max Loss: 0.69

Cost 0.69 or best price.

And/or

(SLV) 33/36 out of the money bull call spread.

Expiration: Oct 17, 2025

10 contracts

Max Profit: 2050:

Max Loss: 950

Cost: $9.50

This evening (SLV) is priced at over $34.00, and silver (XAG/USD) is priced at around $37.50.

 

 

Also, in early June I issued out of the money bull call spreads on:

(AMZN)

210/220 Expiry Oct. 17, 2025 (Cost: $4.53)

215/225 Expiry Oct. 17, 2025 (Cost: $3.98)

(VST)

180/185 Expiry Sept. 19, 2025 (Cost: $1.92)

(IWM)

215/225 Expiry Dec. 19, 2025 (Cost: $4.33)

215/220 Expiry Dec. 19, 2025 (Cost: $2.32)

(QQQ)

545/555 Expiry Sept. 30, 2025 (Cost: $4.57)

550/560 Expiry Nov. 21, 2025 (Cost: $4.70)

These option spreads are doing well.  I know some of you jumped on these trades.  Congrats & well done.

 

MY CORNER

 

 

THE BUTCHER BIRD (a relative to our Kookaburra).  It is so named because it can kill small rodents & other animals.

 

The Butcher bird in the foreground enjoying breakfast with Magpies.

 

 

Cheers

Jacquie