Trade Alert: Market Rotation

The embodied AI + energy + reindustrialization trade is back on.

The Market Rotates Back To Our Core Themes

One thing yesterday reinforced is that this market’s real momentum isn’t in the headline indexes—it’s in the companies powering the reindustrialization and embodied-AI buildout. While the S&P and Nasdaq finished essentially flat, several names tied to those themes surged. As I mentioned earlier today, a prime example was USA Rare Earth (USAR 0.00%↑), one of Wednesday’s Top Names, which jumped more than 24% on Thursday after we entered it.

That matters because, historically, our Top Names cohorts have substantially outperformed the market over the following six months—one reason we lean on them so heavily when identifying asymmetric upside in otherwise choppy markets. When the broader pullback hit many real-economy and AI-infrastructure companies far harder than the indexes, it simply created better entry points. Yesterday’s action suggested the underlying economic strength is starting to reassert itself in the stocks.

We have another Top Names trade today, also aligned with the reindustrialization and embodied-AI themes. It’s a company we exited profitably last month. After a secondary offering knocked the stock down, it reappeared in yesterday’s Top Names, giving us a timely chance to go back to the well with a new structure.

Details follow for subscribers.

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Today’s Top Names Trade

Reindustrialization / Embodied AI theme