Yesterday, I told you we might be staring at one of the best TACO trade setups of the year.
Today, you’re seeing exactly why.
Markets are set to open significantly higher after news broke overnight of a two-week ceasefire between the U.S. and Iran—a dramatic shift from the brink-of-war headlines we were getting just 24 hours ago.
Let’s rewind this for a second.
Just yesterday, oil was surging, markets were selling off, headlines were screaming escalation, and a hard military deadline was looming.
Fear was everywhere.
And now, that same fear has completely reversed. Fear has turned into FOMO (Fear of Missing Out). Futures are ripping higher, oil is dropping fast, and risk assets are snapping back.
This is the TACO trade in real time.
This Is Why You Don’t Panic
Markets consistently overprice worst-case scenarios.
In the last 48 hours, investors were pricing in prolonged war, energy shocks, and a global slowdown.
Instead, we got a pause in fighting and a path—at least temporarily—toward de-escalation. Was it guaranteed? No. Was it probable? Based on history, yes. And that’s why we prepare, not react.
And here’s where it gets even more important.
The stocks you should have been watching yesterday are already moving…
Three of the top stocks in The McCall Letter—Teradyne (TER), Prysmian (PRYMY), and Fabrinet (FN)—are all responding exactly as expected.
Teradyne is hitting a new all-time high as a leader in AI and robotics.
Prysmian is surging to a new historic high as global cable demand feeds directly into the infrastructure trend.
Fabrinet is benefiting from renewed strength in optical and AI data infrastructure.
These are exactly the types of names I’ve been talking about: high-quality companies tied to long-term megatrends, temporarily pulled down by short-term fear.
And now, they’re bouncing fast.
The Money Is Made in the Setup
This is the part most investors miss.
They wait for clarity. But clarity just showed up, and the market is already moving.
That’s why yesterday mattered more than today. Yesterday was the opportunity. Today is the confirmation.
Now, don’t get complacent.
This is a two-week ceasefire, not a final resolution. Volatility isn’t going away. In fact, it’s likely we’ll see more swings like this. But now you’ve seen the playbook work again.
The TACO trade works because fear overshoots reality. And once again, it did.
Stay calm. Stay disciplined.
And the next time you see panic like we saw yesterday, you won’t hesitate.
Here’s to the future,
Matt McCall
Founder, NXT Wave Research
