Public trading strategy
EV makers crush delivery numbers as Fed rate hikes get shelved — momentum trade
Thesis
Both Tesla and Rivian just crushed their delivery expectations, showing massive consumer demand for electric vehicles. This comes on the exact same day that a terrible jobs report forced the bond market to price in a more lenient Federal Reserve. Since a lower interest rate environment makes auto financing more affordable for everyday buyers, the combination of strong delivery numbers and a lower-rate outlook creates a perfect tailwind for EV stocks to continue their momentum.
Strategy approach
Build a rule-based strategy that enters long TSLA and RIVN on D1 when both stocks close up >3% on a day where the 10-year Treasury yield (TNX) drops by at least 1%. Hold for 21 days max with a 7% trailing stop.