We’re Trimming 3 Positions as Renewed Tensions Flare

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
AXON	Sell	35	640.46	388	4.0
BAC	Sell	246	59.86	3,999	3.8
LH	Sell	350	283.86	440	2.0

After you receive this alert, the Pro Portfolio will make the following trades:

Sell 35 shares of Axon (AXON) at or near $628. Following the trade, the Portfolio will own 388 AXON shares, roughly 3.9% of its assets.

Sell 245 shares of Bank of America (BAC) at or near $59.50. Following the trade, the Portfolio will own 4,000 BAC shares, roughly 3.8% of its assets.

Sell 350 shares of Labcorp (LH) at or near $283.35. Following the trade, the Portfolio will own 350 LH shares, roughly 2.0% of its assets.

Good day from London, England as I get ready to return home later on Wednesday and get back in the Portfolio saddle. You’ll recall that when I shared that I was heading across the pond that I would still be keeping an eye on things and that if we needed to make any moves across our holdings, we would do so.

Early on Wednesday morning, tensions and oil prices are back on the rise after President Trump said the interim deal with Iran reached last month was “over.” Trump made that comment at the NATO summit early on Wednesday morning, following a U.S. military strike on Iran on Tuesday night, which were a response to Iranian attacks on three commercial vessels moving through the Strait of Hormuz.

To that, we can add Trump making a renewed case for claims on Greenland and calling for an end to trade with Spain, a combo that is weighing on U.S. equity futures in a big way on Wednesday morning. Renewed uncertainty, even if it turns out to be Trump once again using as negotiation leverage, is hitting the market. As we can see in the charts below, there is some downside to the first layer of support for the S&P 500 near 7,436 and then more solid support with the 50-day moving average near 7,410. For, the Nasdaq Composite, however, it is already grappling with those support levels with the next clear one several percentage points lower.

Against that backdrop, we are making some prudent moves with the Portfolio to lift our cash levels as well as lock in gains in the process. The choices for Axon and Bank of America were based on their significant moves higher in recent weeks, Axon from a low near $402 on June 18, and Bank of America from a recent low of $49.30 on May 15. Alongside those ample gains, the relative strength index levels for AXON and BAC shares have soared past 70, especially those for AXON, which were past 80 with Tuesday night’s market close.

We are also trimming back our exposure to Labcorp following the double-digit move over the last several weeks, but also because over the last several months they have been trading in a channel between $250 and $290. The drivers behind our rationale for owning the shares remain in place, but our thinking is we are likely to get an opportunity to rebuild the position size at lower prices. We can also use the cash for other positions in the Portfolio or for some new opportunities that may present themselves.

In terms of our potential shopping list, Neostellar (NSLR), the former SuRo Capital, are becoming even more compelling in our view. The same goes for Paccar (PCAR) following the surge in June heavy truck orders, which per ACT Research rose more than 230% year over year to 31,400 units. This continues the string of strong monthly orders for reasons we’ve discussed previously, and it suggests either higher than expected industry builds into year-end or orders increasingly spilling into the first half of 2027. That fits with the logic behind our adding PCAR shares to the Portfolio.

We’ll also mention Boeing’s (BA) June deliveries came in at 60 aircraft, which brings its Q2 2026 deliveries to 167 aircraft compared to 143 in Q1 2026 and 150 in Q2 2026. Similar to our thinking with Paccar, higher production levels should drive incremental margin leverage at Boeing. Remember, though, that one of the items we’re watching with Boeing is airline capital spending levels, and the expectation for that could be influenced by the rebound in oil prices. That may pressure BA shares in the near-term and could give a nice opportunity to improve our BA cost basis.

Should these renewed tensions become extended ones, the rebound in oil and petrochemical prices have the potential to drive gas and related prices higher. That would extend the pain on the consumer, but that would also revive a strong tailwind for our shares of Costco (COST), TJX (TJX) and Amazon (AMZN).

Let’s see how things develop and go from there as we rebuild our cash position so we can be ready to pounce when the time is right.

More Pro Portfolio

(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 AMZN, AXON, BA, BAC, COST, NSLR, PCAR and TJX.