Let’s talk about something I feel very strongly about: government interference. It’s antithetical to capitalism. Full stop.
A Rant I Had to Get Off My Chest
I don’t usually open with a rant, but today’s one of those days. I’ve been watching from the sidelines for a while now, and it’s time to say something.
Let’s start with Apple.
I’m not a fan. I don’t recommend it. It’s not a highly rated stock in my book — not one I’m likely to trade.
But still… I feel for them. And I feel for Tim Cook.
Last week, Trump announced a tariff targeting non-U.S.-made phones. A 25% tax. Then — almost as an afterthought — he said Samsung would be included, too. It was nonsensical layered on top of more nonsense.
Why single out one of the bluest of blue chips? Apple is one of the most successful, most valuable companies in the U.S. And yet we’re targeting them with policy decisions that make no economic sense.
The Damage Done
Just look at the chart. Does that look like the steady hand of a blue chip? Prices are all over the place. If I were inclined to trade Apple, I guess I’d welcome the volatility — but that’s not really the point.
The point is: it’s chaos. And it’s caused by political meddling, not fundamentals.
I Took a Hit, Too
This kind of interference doesn’t just hurt mega-caps. Yesterday was a humbling day for me. The market was up — but one of my Two Sigma trades ended up being the worst performer on the S&P.
That stock? Fair Isaac (FICO).
Why the drop? Same story: political interference. The FHA Director, Bill Pulte, went on social media to complain about Fair Isaac’s pricing. And the stock took a hit.
Let me be clear: Fair Isaac earned its dominant position. They invested heavily in their platform, built a durable business, and as far as I’m concerned, they can price however they damn well please.
The government has no business trying to dictate what private companies charge. Period.
Capitalism vs. Communism
I’m going to say this plainly: we are not a communist country. We shouldn’t act like one. When a government agency starts singling out a private business on Twitter — trying to rile up public anger and move markets — we’ve got a problem.
The targeting of Fair Isaac started around May 20, and the stock tumbled shortly after. Ironically, that made it tradable last Friday. We saw the setup and got a green diamond signal in the Two Sigma system — our cue to enter a trade.
Then Tuesday rolled around, and another tweet from Pulte knocked it down again. But today, it’s showing signs of life. You can see the green bar. The valuation is solid. This is the kind of irrational pullback we look for.
Want to Support Capitalism?
Then maybe consider picking up some shares of Fair Isaac. This isn’t just about one trade — it’s about how we want our markets to operate. Do we reward innovation, or do we punish it?
That’s all for today. Rant over.
This is JD, The Rational Trader. I’ll be back tomorrow — likely talking about NVIDIA earnings, which should be fascinating to watch.
See you then.
Talk soon,
JD
The Rational Trader
P.S. The gold supercycle is under way. And you’ve got to see this brilliant move.
