Positioning for Market Repricing: A PE-Based Strategy Involving

Both Nvidia and Apple currently have price-to-earnings (PE) ratios near 30, while other technology companies, such as Tesla and Analog Devices, are trading with significantly higher PE ratios of over 125 and 60, respectively. Given the economic headwinds we are facing, I believe stocks with higher PE ratios may experience more pronounced declines compared to those with lower ratios.

At present, I intend to initiate a long position in Nvidia at its current price around $110, with plans to take profits by shorting the stock at approximately $118, targeting a price of $115. Additionally, once Nvidia reaches my profit target of $118, I will look to short both Tesla and Analog Devices at that price range.

This strategy is based on the expectation that the broader market may place additional pressure on high-PE stocks in the near term.