Market Briefing For Monday, July 6, 2026

Shifting sector volatility has been a highlight going into Independence Day celebrations. Lots of chop currently led by hyperscalers getting crunched; and probably a bit of contributing chaos from 'single-day' options which became a bit too popular, and contribute to alternating volatility especially on such days.

Technically you could have the Nasdaq (QQQ) in particular go either way; mostly because of the mega-caps that I called the laga-caps lately. This impacts the tone broadly, which has been a concern I've had ... I have forewarned about of course the excess euphoria in the mega-cap techs; especially as related to a tendency to ignore how Quantum and photonics will change the landscape.

However, it took Meta (META) offering to sell 'excess AI compute' for a majority to see the overbuilding in data-centers; which actually may not be the case; while we simply didn't invest in that area because we think Photonics and Quantum will enhance productivity, efficiency and basically lower power consumption too.

As to S&P (SPY) you had a distributive pattern for awhile; countered by broadening, as rotation tried (to a degree successfully) to offset the big-tech concentration. I'm a believer in the so-called AI revolution; but with more efficient systems. In the meantime we focus on the sector that basically should be immune from all the hyper-scaler controversy; and that's Defense / Security and similar.

They say: 'necessity is the mother of invention'; and that's why (despite a daily fracas of shares), I stick with Ondas (ONDS). To deal with 'strange encounters' of unknown drones (or other objects) there's need for 'counter-drone' systems geared in-harmony. To wit: integrated security architectures needed to detect risks at earliest stage, network information conveyed that enables coordinated action and resolution. That's the basic 'eco-system' that ONDS is assembling; so execution matters and is key. They even acquired a management team of software folks. And so far we see no reason to question the CEO's leadership guidance. It's not my company (to those who think I can somehow divine how it operates or succeeds); so I can't read the minds of the 'warrant' investors of course needing the common over 20 or 28; just suspect they're hedging that; as part of what restrains the stock, until it doesn't.. then zoom higher. It's just an investment for us from the very early stages and 'pick of the year' since 3.

I suspect most moaning about the daily volatility got in at higher prices - that's nothing I can address, other than to say conviction is maintained - and all the investors with Warrants also paid higher, so clearly expect solid growth over a period of time. I am a bit frustrated at people just looking at price moves (of course that matters); but without understanding at least part of the complexity of the financial, which enable this (CEO Brock was M&A Bear Stearns years ago, then a Boston hedge fund ... so he knows). Thursday's market saw many other tickers shuffle up and down with wide percentage swings; mostly I hear about this one, because ONDS is a ticker we have been in since as noted, oh a single Dollar or less; adding on dips since. Today was an interesting time; if one wants to be greedy/aggressive when others are fearful and evacuating.

Market X-ray: dispersion probably ran its course; at least daily-basis; and I think traders, away for a holiday weekend, contributed to that. So that makes the coming week more circumspect; and becomes the actual first week of the 'new Quarter'; since it's a week without holiday-break-related trading chaos.

The bond market leans a bit dovish; with the Jobs numbers acceptable, and rates easing (we suspected that would be the case); along with softer Oil (we felt the chatter about refilling the Strategic Reserves keeping Oil higher for the entire year, was nonsense noise, and as we thought, it did not derail expected retreats in Oil price; easing inflation); plus we have huge rotation ongoing.