Big week, we have earnings from META and MSFT on Wednesday and AAPL and AMZN Thursday. We also have the FOMC announcement Wednesday, investors will be looking for clues about future rate cuts. Finally, we have non farm payrolls on Friday.

There is so much potential market moving news coming out, and with markets already at all time highs It probably wouldn’t be a bad idea to add to some hedges just in case.

I don’t usually hedge with IWM but I may do that a bit this week. I think IWM is a crappily designed index and I’m not much of a fan of small cap stocks as an asset class anyway. It’s not at all time highs, but the chart off the lows looks pretty much the same as the SPY and QQQs….

Remember, the H in the H.E.A.T. Formula is for Hedges. I believe you should always have hedges in place and then you can move them up and down as you see fit. Not saying the market is going to down, just saying we have so much data coming this week and we are already in nosebleed territory that I’ll sleep better at night being a bit more hedged than I currently am.

Over the weekend President Trump announced a trade deal with Europe and over the next two days Bessent will be meeting with the Chinese. Markets seem to be thinking that we got the best of the deal with the EU.

Liberation Day tariffs start Friday. All in all shaping up to be one of the most important weeks of the year.

I’ve been talking to a lot of reporters about this….

They don’t get it. The market has changed, and probably is not changing back. Today’s meme stocks are not the post Covid meme stocks. Back then investors banded together to create short squeezes on shitco’s. They caught the “smart money” off guard who couldn’t imagine why a hoard of investors would want to buy AMC.

Today it’s thematic. You can call these meme stocks all you want, but the stocks flying now are tied to today and tomorrow’s hottest themes—-anything AI and AI power, drones, space, etc. Trump has turbo charged it with executive orders, tweets, and favored industries.

If you think you can add alpha with old school fundamental analysis, style investing, factor investing, or asset class investing, good luck to you.

On the zero day options, these are just a tool like everything else in the markets. You can use them to gamble or you can use them in a multitude of strategies. I trade zero days SPY puts most days as a hedge and we run the operations for TSPY. You will see more from us on zero day options soon.

Could the market be at a top? Sure. Could it continue to bleed higher? Yes. Are you going to be able to time it? Doubtful.

Then there’s this…..

I would Trumpify your thinking. Who’s in his inner circle, what areas of the market does he like, what’s he tweeting about, where is the next executive order likely to be. Except for GrabAGun (PEW) you would have a near 100% hit rate. More to come from us on this also.

Delta Airlines just fired the first shot in what could become the most profitable—and dystopian—arms race in corporate America.

In its recent earnings call, Delta disclosed that it is reengineering how airfare is priced—not based on supply and demand, but based on you. Your urgency. Your personal life. Your data.

Using artificial intelligence algorithms trained on everything from browsing history to your emails, Delta wants to know exactly how much you're willing to pay—and then charge you that. Today, it’s only 3% of tickets. By the end of the year? 20%.

Imagine your mother passes away. Delta’s system reads your flight confirmation, sees your calendar event titled “Funeral,” and infers your desperation. Result: Your ticket price doubles.

The implications go far beyond travel. This is dynamic, individualized, algorithmic price gouging—and it’s coming for every consumer-facing industry.

But in every dystopia, there’s an investment thesis:

This isn't just about squeezing an extra $200 out of a last-minute flight. It’s about building a future where every price is uniquely, ruthlessly optimized to extract the most money from you.

That’s great for margins. Terrifying for consumers. And investable for you—if you know where to look.

These companies power the compute and model deployment behind these systems:

Today’s stock is WR Berkley (WRB)….

Longer time readers know I think P&C stocks belong in your portfolio for a bunch of reasons. They’ve sold off lately though but WRB pulled a U&R Friday at it’s 10 day moving average.

Launched Friday!!!!