The overall equity market reversed sharply higher from the lows of April 7. It’s impossible to tell at this point if these lows are sustainable as there are so many macro, technical, fundamental, and political factors all at work. However, everything considered, I think there are slightly better odds that the lows are in and I want to start putting some dry powder to work in only the very strongest names. I want to start dipping a toe, but maintain some protection. We’re carrying a hedge in the VanEck Semiconductor ETF (SMH) that we wrote about here last week . We booked half of the profits on that trade in our Active Opps portfolio and still hold the other half of the put spread with decent profits still open. I’m going to leave that hedge on and hope that we close the balance at breakeven or maybe a small loss as the newly established positions carry us higher. Palantir (PLTR) is the focus in today’s column and a name we last wrote about on March 11 . In that article we outlined support into $74/$73 that held and traded up to $98 before reversing lower to below $70 during the tariff storm. The two green Fibonacci support ratios of $62.95 and $58.37, along with an uptrending 200-day moving average, were not even tested. The S & P and Nasdaq 100 are well below their 200-day moving average demonstrating the relative strength of Palantir compared to the equity indices. The gray indicator at the bottom is PLTR/S & P 500 ratio that is set to make a move higher confirming the continued strength of PLTR. Finally, I want to look at the massive volume traded yesterday of 153M shares. This is on par with earnings or options expiration days, which typically bring well above-average volume. The buyers really stepped up here. I’m looking to add a one-third position below the downtrend resistance at current levels with a stop just below the April 7 close. Should we break above downtrend resistance at $87 /$88 I will look to add another third and adjust stops higher. At that point I should be about breakeven on the SMH hedge and look to close that. With further evidence that the equity index lows from April 7th are secure, I will look to add the remaining balance and again trail stops higher. Palatir has quickly established itself as a leader in the AI space captained by Alex Karp, a visionary CEO who is really making waves. PLTR is well aligned with the current Trump administration’s goal of government efficiency, defense initiatives, and is not heavily impacted by direct tariffs. -Todd Gordon, Founder of Inside Edge Capital, LLC Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited! DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
