Our top pick of the day, short IWM, paid dividends for our community. Top picks, overnight long OXY, and long RELL also worked well. These top picks led to significant alpha in an otherwise very bad day for the markets.

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Markets behaved predictably yesterday under Red Alert status due to poor Google earnings and exploding oil prices. However, QQQ performed worse than IWM which we didn’t expect and could spell further trouble for the tech-heavy index this summer.

While we are deeply concerned about both QQQ and IWM with a possible intermediate target for QQQ of $655 (over 5% lower from here), markets could see an oversold bounce today especially if President Trump softens his stance on Iran today which we believe he may — oil is down 3% this morning anticipating just that.

As such, we are upgrading to a yellow alert today but will quickly downgrade to red alert if Trump signals he will proceed with a massive attack against Iran.

Today’s Signal: 🟡

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