We’re Calling Up a Bullpen Name and Making 4 Other Trades
Here’s when we may exit the rest of our inverse ETF holdings.
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After you receive this Alert, we will make the following trades:
| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
| PSQ | Sell | 657 | 25.13 | 963 | 0.4 |
| RWM | Sell | 1,590 | 13.58 | 0 | 0.0 |
| SH | Sell | 457 | 33.05 | 918 | 0.5 |
| BA | Buy | 403 | 226.68 | 403 | 1.5 |
| PCAR | Buy | 295 | 120.65 | 815 | 1.6 |
— Sell 657 shares of the ProShares Short QQQ (PSQ) at or near $25.30. Following the trade, we will retain 963 PSQ shares, accounting for roughly 0.4% of Pro Portfolio assets.
— Sell 1,590 shares of ProShares Short Russell2000 (RWM) at or near $13.55. This will close out the Portfolio’s RWM position, netting a mid-teens loss.
— Sell 457 shares of the ProShares Short S&P500 (SH) at or near $33.15. Following the trade, we will retain 918 SH shares, accounting for roughly 0.5% of Pro Portfolio assets.
— Buy 403 shares of Boeing (BA) at or near $223.50. This is a new position for the Pro Portfolio, and after the trade BA shares will account for 1.5% of Portfolio assets.
— Buy 295 shares of Paccar (PCAR) at or near $120. Following the trade, we will own 815 PCAR shares, accounting for roughly 1.6% of the Pro Portfolio’s assets.
When we added the PSQ, RWM, and SH market-hedging inverse ETF positions on April 1 we did so to blunt market volatility largely due to duration risk associated with the Iran war. With that risk falling now, we are reducing the Portfolio’s exposure accordingly. However, with our use of the Yogi Berra expression that “it ain’t over till it’s over” earlier this morning, we are keeping some SH and PSQ exposure. Should we make our way to Friday, when the deal is expected to be signed and the Strait of Hormuz re-opened, we may unwind the balance of the PSQ and SH positions at that time.
We also have incoming Fed Chair Kevin Warsh’s presser debut, and the risk of some mark indigestion is another reason for us to keep some PSQ and SH on hand.
With that returned capital, some of our cash, the forward-looking nature of the market and the decline we are seeing in oil prices, we are starting a fresh position in Boeing and scooping up more shares of heavy-and medium duty truck company Paccar.
Adding to our thinking on Paccar, this morning, we learned that North American freight volumes, measured by the Cass Freight Index, rose 3% month over month in May, while spot indicators suggest further improvement in freight demand.
Calling Boeing Up From the Bullpen
Turning to Boeing, we’ve had our eye on the shares for some time due to multi-year backlog levels as well as rising production levels. One of our concerns that kept us on the sidelines after adding BA to the Bullpen at $236.87 on May 11 was the ongoing impact of the war and higher oil prices on airline capital spending plans. However, with that set up to fall by the wayside, we calling BA shares up from the Bullpen.
Our initial price target is $260, but as Boeing lifts its production levels, we’ll revisit that target as needed.
Exiting May, Boeing’s backlog stood at 6,178 aircraft measured against the 250 deliveries it’s made year-to-date, up from 220 for the same five-month period last year. In May, Boeing’s deliveries stepped up to 60 aircraft and chatter is the company is looking to lift production levels further.
As we make this move, we recognize BA shares face some tough resistance between $223-$224, and with that in mind, we’ll start BA shares off with a Two rating. Given a few breaks in the chart, we’re setting our initial checkpoint for BA shares at $190, but as the shares climb, we’ll lift that accordingly.
One Final Note
With our intention to increase the Q3 2026 starting position size for the newly reconstituted EPS All-Stars model basket on July 1 to 6.0% of the Portfolio’s assets, this could require some prudent profit-taking subject to where our cash level is near the end of June.
More Pro Portfolio:
- We’re Initiating a New Position in a Trucking Play
- Tracking 26 Signals Across 11 of Our Portfolio Investment Themes
- Weekly Roundup: Portfolio Maintains Lead as Select Holdings Do the Heavy Lifting
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long PSQ, SH, RWM and PCAR.
