Making 3 New Buys and Trimming 2 Holdings as We Layer in Protection
Amid escalating tensions and uncertainty, we’ll fund these defensive moves by cutting back two Portfolio highflyers.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Buy, Sell Stock
| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
SH | Buy | 1,375 | 38.20 | 1,375 | 1.0 |
PSQ | Buy | 1,620 | 32,45 | 1,620 | 1.0 |
RWM | Buy | 1,590 | 16.50 | 1,590 | 0.5 |
MRVL | Sell | 85 | 102 | 2,060 | 4.0 |
SSSS | Sell | 4,265 | 10.75 | 19,560 | 4.0 |
After you receive this Alert, the Pro Portfolio will make the following trades:
-- Buy 1,375 shares of the ProShares Short S&P500 ETF (SH) at or near $38.20. Following the trade, SH shares will account for 1.0% of the Portfolio’s assets.
-- Buy 1,620 shares of the ProShares Short QQQ (PSQ) at or near $32.45. Following the trade, PSQ shares will account for 1.0% of the Portfolio’s assets
-- Buy 1,590 shares of ProShares Short Russell2000 (RWM) at or near $16.50. Following the trade, RWM shares will account for 0.5% of the Portfolio’s assets.
-- Sell 85 shares of Marvell (MRVL) at or near $102. Following the trade, MRVL shares will account for roughly 4.0% of the Portfolio's assets.
-- Sell 4,265 shares of SuRo Capital (SSSS) at or near $10.75. Following the trade, the Portfolio will own 19,560 SSSS shares, roughly 4.0% of its assets.
When we exited our position in SH on March 23, we reserved the right to call the shares back to Portfolio should circumstances warrant such a move.
In our opening comments we discussed the prospect for further escalation in the U.S.-Iran conflict over the next two to three weeks, which is pushing oil prices and the dollar higher with no clarified timetable for the U.S. to wind down its operations, and the Strait of Hormuz poised to remain blocked. The duration of higher oil and related energy prices and market uncertainty is lengthening with the follow-through poised to become an even larger factor as companies deliver their Q1 2026 results and guide for the current quarter.
Below is the quarterly snapshot of consensus quarterly EPS expectations for the S&P 500 as of Friday, March 27:
Here is the same chart from February 27, before the U.S.-Iran conflict began:
You likely see what we see — an increase in quarterly EPS expectations for Q1 2026 as well as the current quarter and the back half of 2026, despite the dramatic moves, we’ve seen in energy prices and their initial follow-through. With the duration of the conflict extending into the start of the Q1 2026 earnings season, the odds of companies issuing more conservative guidance or delivering forward views that fall short of expectations is increasing. At the same time, re-kindled inflation pressures and the prospect for another leg up on that front confirms rate cuts are off the board for now.
Let’s also consider that based on the existing consensus 2026 EPS of $319.70, the S&P 500 closed last night with a P/E multiple of 20.6x. While not overly priced, as those consensus EPS expectations soften, a market at current levels becomes incrementally more expensive, likely leading some investors to question its valuation.
That combination is leading us to add SH shares back to the Portfolio this morning, as well as add additional protection in the form of PSQ and RWM shares.
These are tactical positions and should not be viewed as long-term ones. At a minimum, we will want to hold these positions as the conflict escalates further in the near-term, and as the Q1 2026 earnings season heats up. Remember, the first wave of companies that report are banks and other financials, which are not directly impacted by higher energy costs and their fallout. We will continue to evaluate the place in the Portfolio for SH, PSQ and RWM from a fundamental and technical basis and revisit their roles and percentages based on developments.
We will partially fund these additions by trimming back the Portfolio’s exposure to SSSS shares, which have become an outsized position given their recent significant run of late. We will also tap the substantial move in MRVL shares. These are prudent moves, but given the outlook for both SuRo and Marvell, we will remain shareholders. Depending on where MRVL and SSSS shares settle out as we eventually move past all of this, we would be open to rebuilding both positions.
For members that cannot access these inverse ETFs on their trading platforms, building up your cash positions with these prudent moves in SSSS and MRVL shares should act as a nice buffer as well.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet pro Portfolio was long SSSS and MRVL.
