In today’s Daily Digest, we’ll review the following:

1. New position in TLT.
2. No adjustments since the last report.
3. No exits since the last report.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

Abercrombie didn't have to be perfect. With the stock down 50% since January, even after a HUGE bounce, Abercrombie & Fitch just had to be decent. Anything better than about a 20% guidance cut would have been acceptable. Word was that foot traffic at Abercrombie was lousy. That left ne'er do well Hollister to bail out the corporate ship while $ANF tried to find a bottom. Hollister has had a nice few quarters but that wasn't going to be enough to offset the end of Abercrombie's name-brand and the huge 5 year heater of double-digit comps and fat margins.

Turns out, Hollister had plenty. The tariffs weren't so bad. Business was pretty much fine. Wall Street rejoiced... 

Abercrombie didn't have to be perfect. With shares sitting 50% lower since January sentiment around $ANF was somewhere between "skeptical" and "afraid to look". Word was that traffic was bad at Abecrombie's name-brand stores, leaving Hollister, the surly, less-good-looking younger sibling division of $ANF. Hollister had been good lately but not great. This was supposed to have been a tough quarter for "not great".

As it turned out, Hollister was pretty damn great and the warning was less-than-feared. The stock market rejoiced:

AutoZone $AZO just reported mixed results, narrowly beating on revenue but missing earnings.

Once again, the stock was punished, marking the 4th negative earnings reaction in the last 5 quarters.

That’s a clear trend.

The core business remains solid. 

The company continues to grow steadily, expand its store base, and generate strong free cash flow. 

Their relentless focus on cost control and one of the market's most aggressive share repurchase programs has helped drive long-term shareholder value for decades.

But right now, the market is focused elsewhere.

Margins are under pressure, especially in the commercial segment, where growth has been decelerating. And with comps getting tougher and operating expenses creeping higher, even a slight EPS miss is enough to trigger a selloff.

This isn’t a question of survival because it remains one of the most efficient retail operators. 

But investors are clearly demanding more than stability. 

In a market that’s rewarding accelerating growth and margin expansion, good just isn’t good enough anymore.

Until the narrative shifts, the stock may continue to...

Thanks to everyone who joined us for today's Hot Corner Insider Weekly Strategy Session.

Every day, we sift through the filings to spot where the real conviction lies – cutting through the noise to highlight the most meaningful insider moves.

Here's what stood out today:

📌 Joby Aviation Inc $JOBY – Toyota Motor $TM came in with a monster Form 4 showing a $250 million purchase, boosting its total position to 128,454,401 shares. 

That gives Toyota a 16% stake in JOBY. Even more telling, JOBY now represents 29.12% of Toyota’s equity portfolio, making it its second-largest holding after Grab Holdings $GRAB. 

That’s a serious vote of confidence in the flying taxi space.

Here’s The Hot Corner, with data from May 27, 2025:

Click the table to enlarge it.

📌 KKR & Co. $KKR – Timothy Barakett, the founder of Atticus Capital, filed an eye-popping Form 4 after...

As the market bounces back, growth is doing what it does best: leading the charge.

Large Cap Growth ($IWF) and the tech-heavy Nasdaq 100 ($QQQ) aren’t just participating — they’re setting the pace. These are the names climbing to the top of the leaderboard, outpacing the rest of the U.S. index universe.

But here’s where it gets interesting.

Despite the strong tape, the S&P 500 still closed down 2.5% last week. That puts us right at a critical juncture.

This is the level to watch.

If the market can absorb that dip and hold firm here, it sends a clear message: the bulls are still in control. The trend remains intact, and the path of least resistance is higher.

But if this level breaks, it’s a different conversation. It doesn’t mean the whole move is invalid — but it would suggest this rally needs more time, or a reset, before it can resume.

Either way, how we respond at this inflection point will shape the tone of the next few weeks.
 

Sign up for my free note here.

Over the years, my process as a trader and investor has gone through constant refinement. I've learned to trust the charts, simplify my approach, and focus on clean, asymmetric setups.

But something has truly elevated my game recently — and that’s trading options.

I’ve been doing it for quite some time now, but what really helped me take things to the next level is working with Steve and learning how to gain leverage while keeping risk clearly defined. That’s been a game changer.

It’s all about getting more juice out of the same setups — with full control over risk.

Lately, there’s one stock in particular that’s been an absolute textbook example of this.

BigBear.ai Holdings $BBAI.

I’m watching the sun sink into the gulf of whatever water from my mobile office. 

We’ve done the drive from Key West to Naples a bunch lately and it’s just lovely. 

No major highways. You take a road from the middle of the ocean to another through the middle of the Everglades. 

It is cruising, defined. Florida style. 

You can see both sharks and gators right out your window along the way. 

Anyway, I’ve found that I really enjoy reading and writing from the car. It frees me from my desk-brain. 

I also really enjoy uncorrelated exposure. It frees me from my overweight risk-on equity positioning.

And I don’t mean defensive exposure. 

I’m talking about exposure to things that can move fast and generate alpha in bull cycles but don’t necessarily move with the broader US...

I first cut my teeth as a high-volume, intra-day stock trader.

My earliest trading lessons came from staring at charts, watching price levels, and learning (often the hard way) how momentum behaves. I became obsessed with breakouts, pullbacks, volume surges—anything that would give me an edge on timing a move.

Sometimes that edge consisted of consuming multiple cans of Yoohoo!

(I know, gross.)  

Anyway, back then it was simple: find an intraday trend, hop on, and manage risk. That foundation still informs everything I do.

Eventually, that trend-following mindset led me into commodities. I loved the purity of it. There’s something clean and honest about commodity trends—they either work or they don’t, and often they run much farther than you’d expect. Studying seasonality, macro cycles, and supply/demand dynamics helped me spot inflection points in a way that complimented the chart work I’d learned from stocks.

But there were dry spells, too—periods where the trends would stall or chop. That’s when I started exploring premium selling strategies in options.

One of my trading buddies...

This post was originally for paid members only. It has since been unlocked for informational purposes and does not constitute financial advice.

If you want access to these trades in real time, sign up risk-free today!

Speculative growth is everything right now—when these stocks are cookin’ there’s literally nothing else to do. 

These are the most explosive movers in the market. If we can nail our entries and timing, these vehicles consistently give us the best chances at hitting home runs.

I’m talking about the 10x winners. 

Think about it… Palantir. Soundhound. Hims & Hers. First Solar. E-Hang. Speculative growth stocks are the runners. They are the wild ones. 

In today’s Daily Digest, we’ll review the following:

1. New position in XHB.
2. No adjustments since the last report.
3. Closed TLT at Profit Target.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

There weren’t any S&P 500 earnings reactions yesterday…

But one stock stands out to us in the Engineering & Construction industry.

Construction Partners $ROAD isn’t a flashy name in tech or AI, but it doesn’t need to be. 

This $6 billion infrastructure firm is doing exactly what investors want to see: delivering consistent growth, expanding cash flows, and turning in strong earnings reports quarter after quarter.

The company specializes in road construction and maintenance in the Southeastern U.S., a region benefiting from booming population growth, government infrastructure spending, and year-round construction weather. 

It’s a simple business with a powerful tailwind.

More importantly, they're scaling the business correctly and spitting out a tremendous amount of free cash flow.

This isn’t noise. It’s a clear and durable trend.

Construction Partners has gotten back on track after hitting a rough patch in late 2021 / early 2023 with strong execution and expanding margins. 

The company is now generating more than $126M in trailing 12-month FCF...

Today's number is... 15

AAII Sentiment finally flips after 15 weeks of more Bears than Bulls.

Here’s the chart:

 Let's break down what the chart shows:

• The red line in the top panel shows the consecutive weeks the AAII Bears were greater than the AAII Bulls.
• The blue line in the bottom panel shows the AAII Bull-Bears spread.

The Takeaway: The tide has finally turned after 15 straight weeks of more Bears than Bulls in the AAII Investor Sentiment Survey. 

Bulls are now back on top!

This was the fifth-longest bearish stretch on record, going back to the 1990s. During this bearish sentiment run, the AAII bull-bear spread dropped to levels we last saw during the 2022 cost-of-living bear market and the 2008 financial crisis.

Now the tone has changed.

It’s a good reminder of how quickly sentiment can shift when price rips higher. 

What does this mean going forward?

Long periods of pessimism can create fuel for upside, especially if the market starts showing...

Last week marked yet another period where international markets outpaced the United States.

We continue to highlight these historic breakouts because the evidence is mounting: the 15-year era of U.S. equity dominance may finally be coming to an end.

Just two weeks ago, we pointed to a key breakout in Spain’s $EWP on a dividend-adjusted basis. Last week, it pushed even higher—closing at fresh all-time highs.

Argentina’s $ARGT, a global standout since Javier Milei’s election and the wave of deregulation that followed, also notched new all-time highs.

It remains one of the most impressive leaders on the global stage.

Around the world, more and more markets are breaking out.

From Europe to Asia, Latin America to the Middle East—the strength is broadening.

The United Arab Emirates $UAE just joined the ranks, completing a breakout to all-time highs on a dividend-adjusted basis.

This week, our message remains consistent with what we've said all year:

International markets are full of opportunity—and...

Another strong week for the Round-Up 10 Portfolio with gains last Friday (which now seems like a million years ago) taking us up to over 12% since our March 20 start date, handily beating the S&P500 and the XRT Consumer Discretionary ETF.