This week brought another round of mixed signals from the markets. Nvidia (NVDA) experienced a rally following its earnings report, despite some concerning comments from President Trump prior to the announcement. Additionally, we received a positive inflation report, yet the market appeared soft this morning. This softness may be overshadowed by President Trump's recent accusation that China has "totally violated" the trade agreement with the U.S, reigniting trade tensions.

In just one week, we're left pondering how to navigate these events. Notably, SPY Net Options Sentiment has remained low amid these concerning tariff announcements.

What complicates matters further is the divergence between QQQ and SPY Net Options Sentiment. This disparity has led us to adopt a strategy focused on high-upside tech longs, complemented by sufficient shorts to hedge against downside risk. As has been our approach this year, we recommend this balanced strategy for all investors. With potential simultaneous escalations in EU and China trade tensions, now is not the time to become overly bullish. Nonetheless, opportunities for gains remain in select stocks, provided that risk is managed effectively.

A WORD FROM OUR CEO

It has been a hard week to sort through but we have maintained a well balanced portfolio and our paper trading picks are beating the S&P 500 by 112% annualized, with a win rate of 61% against SPY benchmarks.

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