When a fast grower whispers that growth is slowing—like Netflix's recent summer revenue forecast—the multiple contracts violently. The rule in my book is simple: if a stock drops past my 12% loss limit and the story has fundamentally shifted, I don't sit around hoping for a bounce. I cut it. Disney has also worn out its welcome in our turnaround bucket despite some decent headline beats. We are doing some long-overdue housekeeping this morning to clear out this deadwood and protect our capital.

With cash on hand creeping above $18,000, we have to put that money back to work in businesses that are actually executing. I'm currently maxed out on my technology stalwarts—happily carrying Apple, Microsoft, and Nvidia—so I'm looking right at consumer discretionary to fill the void. Amazon sits perfectly in the sweet spot for us today. It remains a classic fast grower that continues to expand its addressable market, but they are finally letting some of that incredible operating cash flow down to the bottom line.

The broader market is going to do what it's going to do, and guessing macro directions is a fool's errand anyway. My focus remains strictly on the companies. I will be stepping in at the open to forcefully execute the exits on Disney and Netflix, and rotating those funds directly into Amazon shares. No hesitating—just cutting the broken stories and buying the ones that are still working.