Hi,

I know I’ve been quiet, but there hasn’t been much to say lately. The Yellow Alert is still in effect. The Russell 2000 has validated this by remaining stuck in a trading range for over 4 months.

I focus on risk/reward charts, so I’m not going to predict if the market will correct (drop 10%+). However, I do find it problematic that the Trump Rally hasn’t reversed itself (despite clear signs that his key market-moving goals are not being accomplished in a timely manner, if at all).

I also find it problematic that U.S. GDP was originally supposed to grow 3% in Q1, but fell well short. Geopolitically, we all know about North Korea, the “Mother of All Bombs”, and the French elections.

Should all of these factors (along with high fundamental valuations) come together to send stocks lower? If you ask me, yes… but I’m not in charge of the directions in which stock move (or how quickly they get there).

However, stocks haven’t been acting well over the past several weeks. We’ll see if that continues.

In the meantime, I remain long my favorite stocks (there always a bull market somewhere) and short the market (most notably the Russell 2000). For those who are wondering, my top 5 positions are listed below. Cheers!

My top 5 position at present (In Alphabetical Order)

Marin Software (NYSE:MRIN)

Mattersight (NASDAQ:MATR)

RADCOM (NASDAQ:RDCM)

RADISYS (NASDAQ:RSYS)

Silver Spring Networks (NYSE:SSNI)


The information in this article is for informational and illustrative purposes only and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action. The opinions expressed in Pipeline Data, LLC publications are the opinions of Mr. Gomes as of the date of publication, and are subject to change without notice and may not be updated.

All investments carry the risk of loss and the investment strategies discussed by Mr. Gomes entail a high level of risk. Any person considering an investment should perform their own research and consult with an investment professional. Additional important disclosures can be found in the Important Disclosures section at PipelineDataLLC.com.