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Feb 13, 2026
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LONG
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Treasury yields dropped significantly after the CPI print (10-year down ~15bps this week). The Russell 2000 (Small Caps) outperformed (+1.2%), and sectors like Utilities, Real Estate, and Materials led the market. Lower yields reduce borrowing costs and increase the attractiveness of dividend-yielding sectors. Small caps (IWM) are disproportionately sensitive to rates due to floating-rate debt; as yields fall, their balance sheet pressure eases, prompting capital rotation out of expensive tech and into these value/cyclical pockets. LONG exposure to rate-sensitive sectors and small caps as the "yield relief" trade gains traction. Re-acceleration of inflation causing yields to spike back up. |
Bloomberg Markets
Stocks Steady as Treasury Yields Slip After C...
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Feb 12, 2026
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LONG
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Rivian revenue beat estimates ($1.29B vs $1.2B range). Despite mixed delivery guidance, the stock surged ~10% in after-hours. The market reaction indicates that expectations were incredibly low. The revenue beat and the focus on future vehicle platforms (R2) provided enough optimism to trigger a relief rally/short squeeze in a beaten-down name. LONG (Relief Rally/Earnings Reaction). Cash burn rates and production ramp execution risks. |
Bloomberg Markets
Software Selloff Deepens on AI Fears | Closin...
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Feb 12, 2026
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LONG
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Instacart (CART) beat on Gross Transaction Value and Orders. Crucially, the Q1 Adjusted EBITDA forecast beat estimates. Shares up ~7%. Unlike Pinterest, Instacart demonstrated operational efficiency and pricing power by beating profit guidance. This signals resilience in the consumer delivery space despite inflation. LONG (Earnings Beat). Consumer spending slowdown. |
Bloomberg Markets
Software Selloff Deepens on AI Fears | Closin...
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Feb 12, 2026
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AVOID
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Airbnb beat revenue outlook for Q1, but costs/expenses in Q4 came in higher than expected ($2.51B vs $2.36B). Shares down ~5%. Even with a revenue beat, the market is punishing expense bloat. The inability to control costs overshadows top-line growth, leading to margin concerns. AVOID (Margin Compression). Successful cost-cutting measures in future quarters. |
Bloomberg Markets
Software Selloff Deepens on AI Fears | Closin...
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