Here's How I'm Handling the Market Now, Updates on 8 Stocks
One certainty of the markets is its cycles; also, let's look at Uber, SSR Mining and more.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Few things in life are certain, but the one great certainty of markets is cycles. Trends always come to an end, and new ones develop. Wall Street is largely an exercise in timing cycles and identifying trends. If you can get that right, then your chances of producing substantial returns are greatly enhanced.
The stock market is now at a juncture where there is an increased likelihood of a shift in cycles and trends. This is partially due to the end of the second-quarter earnings and the start of seasonal weakness in the August-October time frame. But it is also due to shifts in the economy as Trump policies are implemented and the Fed starts to adjust its monetary policy.
One of the key questions is whether the powerful AI cycle will continue. The positive market cycle we are currently in is mostly driven by AI, semiconductors, and mega-cap technology. Many of these stocks have aggressive valuations, but as Meta META and Microsoft MSFT have illustrated, they still have powerful growth.
There is an unusually high level of market uncertainty as we watch to see if the bull cycle starts to deteriorate and trends like AI start to shift. There likely will be rotational action as there are many lagging stocks with good valuations that have underperformed due to money flowing mainly into AI.
My best advice for this tricky market is increased vigilance. Trying to predict what will happen next is futile. The correct approach is to watch a shift in the character of the action and react as the price starts to change.
The bears have been predicting disaster for many months now and have plenty of good arguments, but they have been wrong. They will eventually get it right, but probably not for the reasons that they think. Cycles are inevitable, just like the sunrise and sunset every day.
Due to this increased uncertainty as we head into the dog days of summer, my game plan is to raise cash and be more aggressive at protecting gains. Plenty of good opportunities will develop if we do suffer some negative seasonality, and I plan to have cash to take advantage of them.
I don’t try to predict market tops or turns. I try to be strategic so that I am in a position to take advantage of whatever may happen next.
There are earnings reports coming after the close tonight and in the morning from ADMA Biologics ADMA, Nebius Group (NBIS), Xeris XERS, and Emergent BioSolutions EBS that I will be watching closely.
The earnings reports from SSR Mining SSRM and Delcath DCTH this morning were quite good, and I’ll be trading those. BridgeBio BBIO is being hit hard on an earnings per share miss, but I think this is an overreaction and will be watching for an entry as it finds support. UBER UBER looked good as well and has a big buyback. It is down on the news, and I’ll be adding as market conditions develop.
I don’t know what this market will do next, but I am optimistic that there will be plenty of trading opportunities as things unfold.
At the time of publication, DePorre was long ADMA, NBIS, XERS, EBS, BBIO, UBER, SSRM, DCTH.
