$251 into $1,500,000 in 5 days 18 hours

We didn’t want to write this section. We wanted to hit send. We didn’t want to check the chain to see if the rumors were true. But then we looked and threw up last night’s green tea shots in our mouths.

The headline is true.

5 days and 18 hours ago dimethyltryptamine.eth (dmt lol) made two separate swaps of ETH for $PEPE (the token we mentioned in the Tuesday newsletter).

Here’s the first one:

Yes that’s $195.64 worth of ETH into almost a million dollars.

Here’s the second one:

Yes that’s $48.91 into over five hundred thousand dollars.

Don’t do the math, don’t calculate the return, don’t think before you jump into crypto ponzis with the amount you’d spend out for dinner for five at the Olive Garden.

Sadly in a story we’ve seen and been involved in ourselves, Mr. DMT appears to have married the bag and is still holding 5,871,319,038,162 $PEPE in his wallet. Imagine not taking profit on a play like this.

Because liquidity for memecoins like this changes rapidly it can be difficult or impossible to exit a position anywhere near the current value. Try to empty the clip slowly and the wave crashes before you can get out.

If he wanted to dump the entire thing in one transaction, it would be a 40.41% haircut. Which is normally bad but in this case it’s like transaction two paying for transaction one.

Taking $195.64 and turning it into a million dollars… it’s amazing what can happen when the markets aren’t rigd.

Margins, a mess Elon can’t cover up

Tesla has a history of finding unique ways (see carbon credits) to beat estimates and force the members of $TSLAQ move back in with mom and dad.

Market action yesterday was pretty restrained until the last few minutes of the session where remarkably a ton of selling pressure came in which we’re told was not related to the possibility of earnings report leaking out.

After the close the report was shared with the rest of us common people and oh baby the results did not disappoint if you think Tesla sucks (we mostly do).

Gross margin down, inventory up and even worse free cash flow collapsed 80% year over year to a paltry $441 million.

But wait… there’s more.

Elon is a super based psychopath. The guy has more kids than Nick Cannon while making him look like father of the year because between shitposting on twitter and running the rest of his empire, when Elon have time to be a dad. He might not even like being a dad, because somehow he found the time to beat Elden Ring (the most difficult game we’ve ever played) with the worst build possible making it 2-3x harder on himself.

And in psychopathic fashion he telegraphed the next move for Tesla which probably has to cut their margins even more to remain competitive with the rest of the EVs coming to market.

When you are no longer winning at one game (selling EVs alone), you can change your strategy or play a totally different game.

Musk is walking through door number three.

It’s funny when CEOs use big words and analysts and twitter fanboys with their mouths open drink it in like sweat from Dua Lipa.

We’ll simplify it for you:

ROKU sells ridiculously cheap televisions loaded with their software and advertising technology (trackers). They lose money on the frontend but make money selling ads along with your data to whoever’s bidding the highest.

Tesla wants to sell their cars at cost, then make up the profit later by selling self-driving software. The same software responsible for numerous accidents and deaths like this one in February. We’re not engineers but we’re confident saying that building an electric vehicle with autonomous driving capabilities is much more complex than putting together a flatscreen television with a Roku stick inside of it.

Run some quick maths:

Current pricing looks like $199 per month subscription.

If we assume they make $10,000 per car, then the payback period is 50 months and anytime after the “very significant” profits come later. This also assumes every person who buys a car signs up for self-driving and never cancels. A lot of assuming.

Maybe free cash flow collapsing 80% year of year wasn’t enough and Tesla wants to go negative and run solely on Dogecoin emissions. Who knows?

Here’s a totally original idea to subsidize the cars: sell ads. Roku does it. Netflix does it. On a long enough timeline everyone does it. We can’t think of anything more enjoyable than sitting around waiting for a supercharger station watching the trailer for Fast & Furio 15 Eletrek Attak.

The market isn’t buying it with $TSLA down 8% at time of writing and a clear oh shit nothing but air call your momma pattern forming.

UNBELIEVABLE (or the second most hated rally in the stock market)

NVIDIA is much like Tesla. It’s kind of its own market where fundamentals matter less than the amount of times Jensen Huang can say AI during a press conference looking like an edgelord beef guy in his designer leather jacket.

Huang must have learned his market exploitation speak skills from Musk because the guy can pivot like no other; crypto mining, metaverse, and now AI.

Mentions on Nvidia earnings calls:

AI:

• Q4 23: 72

• Q3 23: 42

• Q4 22: 52

Metaverse/Omniverse:

• Q4 23: 6

• Q3 23: 13

• Q4 22: 25

[ thetranscript ]

NVDA is the most hated rally, but there’s something else happening in the stock market that the rigd media refuses to talk about.

And it’s the unbelievable and maybe unstoppable rally in homebuilders.

What? Homebuilders? In this economy?

30-yr mortgage rates at 6.94% Real estate is dead?

You thought wrong…

They are so back and ripping at 52-week highs.

America’s largest homebuilder D.R. Horton reported before the open today destroying analyst forecasts.

Earnings per share: $2.73 vs $1.93 expected

Revenue: $7.97 billion vs $6.54 billion expected

Here’s what Donald R. Horton (yes that D.R. Horton) had to say:

Ah good old supply and demand. Wouldn’t it be something if the Fed created this problem where they trapped people in their homes with 3% mortgages, thus reducing their incentive to move and preventing existing homes from coming to market which disallows any sort of price discovery at higher interest rates, thereby giving homebuilders greater control of supply and more pricing power, which all contribute to inflation leaving us in this flat circle of who knows where we are going with this but it is a problem.

Bigger problem if you didn’t buy $DHI at the bottom June 17, 2022 - before the indexes in October.

It’s a straight rip max pain meltup for housing bears at 85.62% in a little under a year.

Some other housing stocks at 52-week highs:

LENNAR CORP ($LEN) - 23.47% YTD

TOLL BROTHERS INC ($TOL) - 26.20% YTD

TAYLOR MORRISON HOME CORP ($TMHC) - 28.55% YTD

Better yet…

Why not sell the stuff that builders use?

BUILDERS FIRSTSOURCE, INC ($BLDR) - 45.72% YTD

For months the media and your friend (a former nurse) who just got her real estate license and drives a leased BMW 3 Series she dented the other day after too many spicy pineapple margaritas have been telling you the housing market is collapsing, buyers are gone and there’s no hope.

For ten months housing stocks have gone straight up.

Yeah yeah we know the market is not the economy, but how can the opinions be so far apart?

Bc it’s rigd.

thanks for reading the RIGD REPORT by RIGD AI

we’re building tools for the modern degen investor

follow us on twitter @rigd_ai

p.s. we are hiring a data scientist with experience trading options. is it you?