This week’s Top Pick of the Week (TPOW) was AeroVironment, Inc. (AVAV). The trade was initiated on Monday, August 11, 2025, at an opening price of $250.31 with 62 shares purchased, representing a beginning balance of $15,535.82.
The position was held through the week and closed on Friday, August 15, 2025, at a price of $246.74, resulting in a modest loss of ($3.57) per share, or -1.43% on the position.
While this week’s trade ended slightly negative, it’s a reminder that the TPOW strategy is based on a rules-driven process designed to capture consistent upside over time by focusing on high-probability setups.
Market Overview
The broader market showed continued volatility as investors digested economic reports and earnings announcements.
- S&P 500 (SPY): The SPY closed the week slightly lower, giving back some of its early gains as inflation data and mixed retail earnings pressured sentiment. The index pulled back after testing recent highs, suggesting near-term consolidation may be setting in.
- Technology and AI-related names saw profit-taking after strong runs in recent months.
- Energy and utilities showed relative strength as investors rotated into defensive and value-oriented sectors.
Key Takeaways
- AVAV remains a strong candidate in the defense technology space with long-term growth potential, despite this week’s short-term setback.
- The TPOW strategy focuses on technical breakouts, volume strength, and relative momentum. Losses are expected occasionally, but the system’s edge comes from sticking to the rules and compounding gains over many weeks.
- Broader markets continue to trade in a tight range as economic data and Fed commentary keep uncertainty elevated. The next big catalyst could be the upcoming Fed meeting and fresh inflation readings.
Looking Ahead
The upcoming week will feature:
- Key economic data releases on housing and consumer spending.
- Several large-cap earnings reports that could influence market sentiment.
- Continued monitoring of market breadth indicators, which remain mixed and suggest caution in chasing extended moves.
We’ll be watching closely for the next Top Pick of the Week setup as our rules-based system highlights opportunities with the highest probability of success.