That was a rough day for most U.S. financial markets. The major equity indices took a hit on Thursday as tensions in the Persian Gulf and Red Sea pushed WTI crude oil futures above $93 per barrel. Additionally, disappointing performance by Tesla (TSLA) and Alphabet (GOOGL) for their second quarters put pressure on the tech/growth type names. Alphabet ran into a free cash flow problem. Tesla just had a sloppy three months, badly missing on profitability. 

The S&P 500 gave up 1.21%, while the Nasdaq Composite was slapped around for a loss of 2.15%. The yield paid by the U.S. 10-Year Note ran up to 4.7% while the U.S. Two-Year Note paid 4.36% by day’s end.

Markets seemed to take it badly when President Trump warned that U.S. forces would destroy an Iranian bridge or power plant for every vessel attacked in the Strait of Hormuz. Iran threatened to target infrastructure and energy in the region where the U.S. has overt interests. 

Industrials were leaders on Thursday, led by Defense as Lockheed Martin (LMT) popped for a gain of 10.5% in response to earnings. RTX (RTX), which is the old Raytheon, also ran 7.3%. Discretionaries were pummeled as Tesla put the whammy on the autos. 

One more day this week, gang. Dougie is back tomorrow. It’s always a pleasure to go through the trading day with you when I get the chance. Have a nice evening and may God bless you all. 

Sarge out. 

Position: Long LMT, RTX equity 

Q) Since integration (1947), three Major League pitchers have won at least 17 games in a single season while also saving at least 10 games, all without making a single start. Name them.

1) Roy Face, Pittsburgh Pirates, 1959. 18-1, 2.70 ERA, 10 saves in 57 relief appearances. 

2) John Hiller, Detroit Tigers, 1974. 17-14, 2.64 ERA, 13 saves in 59 relief appearances. 

3) Bill Campbell, Minnesota Twins, 1976. 17-5, 3.01 ERA, 20 saves in 78 relief appearances. 

Position: None

From Seeking Alpha:

Mag 7 ETF on track for its worst day in more than a year (MAGS:BATS) | Seeking Alpha 

Position: Long NVDA, AMZN, MSFT equity 

Since integration (1947), three Major League pitchers have won at least 17 games in a single season while also saving at least 10 games, all without making a single start.

Name them.

Position: None

New Lockheed Price Target After Huge Breakout | TheStreet Pro

Position: Long LMT, RTX equity 

Three cheers for the old Raytheon.

Readers can see that RTX Corp. (RTX) is breaking out on Thursday from a Cup with Handle pattern of bullish reversal. This particular Cup with Handle bears a $204 pivot.

Relative Strength has spiked and the daily MACD has just produced a bullish crossover of the 26-day EMA by the 12-day EMA. Yes, while the histogram of the 9-day EMA moves above the zero-bound. 

Target Price: $245

Pivot: $204

Add: As close to pivot as possible

Panic: Loss of 21-day EMA

Note: RTX will likely experience a golden cross either tomorrow or early next week. 

Position: Long RTX equity

$150 Oil Looks Unlikely, But Not Impossible. How It Could Happen. – Barron’s

Position: None

The $10K Portfolio’s Fueling Up on Rocket Lab (And Another Stock) | TheStreet Pro

Positions: Long ALTO, EVLV, INSG, OCUL, ONDS, PL, RXT, SOFI, SWBI, VELO equity. Short SOFI, OCUL calls. 

S&P Futures: -92 vs FV.

Nasdaq Futures: -489 vs FV.

US 10-Yr Note: $4.716%

US 2-Yr Note: 4.364%

US 3-Mo T-Bill: 3.859%

WTI Crude: $91.24

Gold: $4,050

Silver: $57.58

Bitcoin: $64,992

US Dollar Index: 101.44

positions: Long Gold, Silver, US Treasuries.

A Google First: Negative Free Cash Flow; Oil Bubbles Higher; Yields Creep Up | TheStreet Pro

Positions: Long LMT, RTX, INTC, IBM equity.

Donald J. Trump

@realDonaldTrump

The Civil Nuclear Deal (There will be no enrichment of material!) being made between the United States Department of Energy and Saudi Arabia, which pertains only to non-military use such as the ones that Iran and UAE (and others) already have, will be approved, but is totally subject to Saudi Arabia joining the very respected and successful Abraham Accords. The United States is not opposed to Civil (Non-Enriched) Nuclear Facilities. Thank you for your attention to this matter! President DONALD J. TRUMP

Positions: none

… Covering cyber-security and AI.

AI Models Went Rogue, and These Stocks Are Ready for the Fight – Barron’s

Positions: Long CRWD equity.

S&P Futures: -29 vs FV.

Nasdaq Futures: -134 vs FV.

US 10-Yr Note: $4.678%

US 2-Yr Note: 4.321%

US 3-Mo T-Bill: 3.848%

WTI Crude: $90.19

Gold: $4,095

Silver: $59.045

Bitcoin: $65,668

US Dollar Index: 101.19

Position: Long gold, silver, U.S. Treasuries

Good morning!

Your boy Dougie is out today. That means your tour guide for today will be your very favorite back-up quarterback. No, not Don Strock. No, not Earl Morrall. No, not Jeff Hostetler. It is I. Sarge. Let us proceed.

First, let’s not forget to pound some caffeine (only if you can). We’ve got work to do. Quickly do something to get the blood flowing. I like push-ups. I’m not everyone. If all you can do is hobble around your office a couple of times, do that. Like I said, we’ve got work to do. 

Houthis are attacking vessels in the Red Sea. The Iranian military is attacking vessels in the Strait of Hormuz. U.S. forces are attacking Iranian targets. Iranian forces are attacking U.S. allies in the region. It’s a mess. This has oil trading higher and U.S. Treasuries trading lower in anticipation of an inflationary reacceleration. 

Are we afraid? No. We don’t like it, but we don’t openly fear a lot of things. We improvise, we adapt, and ultimately, we overcome. That’s how we roll. So, let’s get after it gang. It’s Thursday and we are fired up. Lock & load. 

Position: None