July 13, 2026

Markets:

Stock futures fell on Monday, with chipmakers following international peers sharply lower in premarket trade, as traders weighed the latest events in the Middle East and braced for a slew of corporate earnings reports due out later in the week.

Iran responded to a fresh wave of strikes from U.S. forces over the weekend by launching an attack on American military bases in several Gulf states, deepening a standoff over the strategically vital Strait of Hormuz.

The latest exchange casts further doubt over the future of the interim peace agreement signed last month, a deal that had sought to pave the way to reopen the Strait of Hormuz and end the war after 60 days of negotiations.

Iran’s strikes targeted U.S. bases in Kuwait, Bahrain, Jordan, Oman and Qatar, according to the country’s state media outlets, describing them as retaliatory measures to renewed U.S. bombings.

Major U.S. banks — including JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo — are among the 28 S&P 500 companies set to report earnings this week. Quarterly results from Netflix, Johnson & Johnson and UnitedHealth are also on deck.

Expectations for the season are high. On average, analysts estimate that second-quarter S&P 500 profits grew by more than 23% year over year, per FactSet.

One sector to watch is tech. Specifically, whether AI can keep boosting earnings in the sector.

Portfolio:

We begin the new week with active positions in SHAZ and ONDS.

This morning's weakness is being driven more by headlines than by any meaningful change in the market's longer term outlook. While geopolitical events can certainly create short term volatility, we continue to view these pullbacks as opportunities rather than reasons to abandon the trend. As earnings season gets underway, we still believe the path of least resistance remains higher and that new summer highs are well within reach.

The earnings calendar starts to heat up tomorrow as Citigroup, Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo report results. We'll also be closely watching names that have our attention over the next several sessions, including AEHR, ASML, Morgan Stanley, TSMC, Netflix, and GE Aerospace.

The biggest wave of earnings arrives next week, and that's where we expect market leadership to become much clearer. AI infrastructure, software, semiconductors, and technology remain the dominant themes, and history has shown that periods of uncertainty often become the foundation for the next leg higher.

From a technical perspective, the roadmap remains relatively simple. Ignore the emotional headlines and focus on the charts.

QQQ reached 726.35 on Friday, essentially matching the recent highs before pulling back, creating what looks very similar to a double top. Combined with this week's gap lower, it's not surprising to see some early selling pressure. Gap moves have a tendency to get tested, and we'd actually welcome a deeper flush toward the 713 area to fill last week's unfilled gap before the next advance begins.

For today, the 715 to 718 zone is the first area we're watching for support. As long as buyers defend that region, the broader trend remains intact. Even if we see additional weakness early in the session, our focus remains on how the market responds at support rather than reacting to the headlines.

Be ready and stay patient.