Market Talk
This market isn’t rewarding stubbornness. It’s rewarding movement.
We’re seeing quick pops, quick drops, and a lot of second-guessing in between. That kind of tape doesn’t favor “set it and forget it.” It favors taking gains when they show up and cutting losses before they turn into something bigger.
If trading, no need to be perfect.
Just don’t let a winner turn into a loser — and don’t let a small loss grow legs.
Perhaps you’ve been a reader here for a while. Last year we saw some really positive returns — some over four times. Examples: LRCX in the 60s, KTOS in the teens, and others like quantum names such as QBTS in low single digits. The same for the gold and silver miners like KGC and HL.
One tenet is to preserve gains and cut losses.
To stay objective and disciplined, we should also note that this 2026 year has been a choppy market — at times priced to perfection on themes like AI, without recognition of the enormous costs in energy and resources required to make it all happen. Companies are all chasing their own AI agenda, competing and spending.
Then add the Iran war that has been marketed to the people as a “four to six week excursion.” Maybe. Maybe not. War with entrenched radical Islamic's remains to play out, even as claims are made they’ve been thinned out.
The latest is the U.S. embargo on Iran’s oil trade. That may soften the chop and create buying opportunities — perhaps not in oil stocks.
We are noticing some speculative stocks emerging and popping — energy names like OKLO in the small modular reactor space, and quantum computing as a possible lower-energy alternative to GPU data centers.
If venturing into that space, consider the pros and cons — reality vs. hype.
New positions in stocks like OKLO and QBTS may be good trades or not. But we should remember the old paradigm — short sellers tend to jump on stocks that pop fast with no earnings and operating losses. That often follows a move that overextends itself.
That said, when institutions decide to lock into a sector, sometimes a run can last longer than expected.
The bottom line is to be circumspect. Test with smaller positions. Sometimes the only way to really feel how a stock trades is to put some skin in the game if you believe the bull case.
But skin should not necessarily be part of your own hide.
As an example of that, we tested our thesis on oil and gas stocks DVN and PR in the Permian Basin. Our temporary conclusion is the oil sector is too volatile to try to trade cleanly right now.
In this “new normal,” other areas seem better suited.
Yesterday was “quantum day.” The QBTS CEO took a shot across the bow at NVDA and its high-energy GPU approach — a reply to the earlier claim that quantum wasn’t ready for prime time.
QBTS, IONQ, and maybe SKYT are on watch.
If you’re testing a thesis — especially one that already popped — keep it measured. It takes more than a day to know if volume is institutions or just retail chatter that fades as fast as it came.
Another piece starting to make sense in this market is getting paid while you wait.
Covered calls aren’t flashy, but in a market that stalls, chops, and hesitates, they can put real cash in your account. Sell them into strength, not weakness. Let the market come to you.
If the stock runs away, fine — you made money. If it sits still, you collect. That’s not a bad place to be.
A key thing when selling a covered call on a stock you hold 100 shares of is the strike price and the expiration date. The setup has to be right, with the right stock, to make enough to justify holding it.
Stock Talk
In addition to the stocks mentioned in our previous posts, some of the names above are trading “hot,” at least for now. Being well aware how “hot” can turn, the daring should consider portion control and discipline. That’s why smaller entries, active management, and taking shots (or not) — rather than swinging for the fences — still makes sense here.
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- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
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