Traders,

We begin a new month and new quarter this week in the markets and I think it’s clear that the situation in the Middle East is set to continue and escalate. You can look at monthly chart of the $SPY ( ▼ 1.71% ) and see that it’s bearish.

And if you go look at $META ( ▼ 3.99% ) and $MSFT ( ▼ 2.51% ) they have basically traded all the way back to last April’s lows.

In fact, for those that took the time to watch Dan’s 2026 Market Outlook he was bearish on those names for a few reasons.

And in the main LongVol Report this week he highlighted them again.

I am a price action and flows trader meaning I don’t really look at data that far out or worry about Macro: I just worry about making good trades and repeating that over and over.

But that has helped me this year to stay bearish the Mag 7.

And I can tell you that we should be headed for lower but that there are plays shorting them and getting long other sectors, like some staples names that Dan also pointed out.

This week let’s get into: