Stop Focusing On The Nonsense – New Highs Coming – Nvidia Tonight

The stock market continues to move sideways, yet sentiment keeps getting more and more negative. Let’s look at the leading index, S&P 400 Mid Cap. Folks, it’s one single good day away from all-time highs. How bad can things really be? People need to stop reading headlines and listening to the media. They are typically universally wrong. How many times have we heard about impending recession since 2021? I’ve lost count. All those Nobel winners have fallen flat on their faces. 2022 was a “high probability” recession. Tariffs were going “crash” the economy. Neither came to fruition.

Investors who over-own 10-12 stocks seem more focused on the NASDAQ 100 below. Lots of people think the index has been hit hard because they are overloaded with the stocks that have been decimated. To be clear, the bull market will not survive without tech, but tech does not have to lead. And for full disclosure, we own a number of leveraged ETFs on this index. The behavior has been very normal. In our stock portfolio, we own a good number of stocks that have been hit. However, reducing position size into the huge rallies and redeploying those monies into stocks outside the tech sector that haven’t rallied strongly has been a winning proposition. And that’s what professionals do.

I have no interest in selling our core positions in stocks like Amazon, Apple, Meta, Google and Nvidia. However, I also never believe there is a new paradigm. As such, we have repeatedly reduced position size to book profits and find other companies. I love when people look at that portfolio and question why we bought all those large pharma companies in 2024 and 2025 when we cut back on tech. It took some patience, but it played out well. And I am sure some will question why we just bought some really downtrodden companies.

Nvidia reports earnings tonight. It certainly seems like they will blow out to the upside. However, I have no idea how the stock will react. If earnings were not about come out, I would say the stock is positioned to rally to the old highs over the coming few months. Nonetheless, we have

We executed a large rebalance in our Strategic Active Asset Allocation on Tuesday. You can see those trades along with some repositioning in our stock portfolio as well. Keep upgrading. Keep moving.

On Monday we sold SPYQ, IBIT, WOOD, some QLD, some MQQQ, some MRNA and some CF. On Tuesday we bought FAPR, SPYQ, CVNA, OWL, more QDEC, more FDEC, more TQQQ, more UWM, more BRK.B, more MDB, more XLV, more FJAN, more QMFE, more KJAN, more QLD and more RMQHX. We sold NJAN, PCY, BAPR, UPS and CRNX.