The market continues to digest political and economic news with a carefree air. Despite a continued sell-off in oil and increased uncertainty for Brexit and domestic healthcare and tax reform, the S&P has chosen to turn a blind eye to these matters and keep its laser focus on the earnings horizon.

Most public companies are just wrapping up their June fiscal second quarters. I’m a bit nervous heading into this earnings season. Valuations are high, and volatility has been remarkably low, a sign that investors are complacent.

Right now the overall estimate for the S&P 500 is for 6.6% earnings growth in the second quarter. While this is a strong absolute number, just three months ago the estimate was for almost 9% growth. Stocks tend to move lower when estimates are cut, not higher.

But as always, there are mini-bear and bull markets within the larger stock market. So while I stay aware of the bigger picture, my focus is on specific stock and industry news. I am toiling away to get some new trades out to take advantage of the big moves that should occur with second quarter earnings.

We scored two terrific gains last week. With the closure of these trades, I know that our “inventory” of names, especially on the options side, is quite low. I’m working hard to get new ideas out to you as quickly as possible!

We sold Impinj (NYSE: PI), a stock that does not fit the traditional reasonably priced growth profile of most Profit Catalyst Alert stocks. I recommended the stock last December when the first speculation hit that Amazon might use its wireless tagging technology. Deeper research unveiled a company with unique technology growing earnings more than 50%. After its big run, the stock is selling at 120 times 2018 earnings, a bit too rich for my blood!

We also sold the PRA Health Sciences (NSDQ: PRAH) calls for a 56% gain in a little more than a month. The stock jumped as high as $77 on Thursday after competitor Parexel (NSDQ: PRXL) was purchased by private equity. We still own the stock in the portfolio.

On a comparable basis, PRA would sell for at least the mid-80s. Adjusting for PRA’s higher growth rate, it would fetch triple digits. My target is $94 and is not based on the expectation that the company will be acquired but rather will move higher based on fabulous earnings growth.

Around the portfolio:

Big Five Sporting Goods (NSDQ: BGFV): Athletic retailers took it on the chin last week when rumors hit that Nike would allow distribution of some product through Amazon. If true, this would have minimal impact on Big Five.

I continue to like Big Five, which is down 15% since my recommendation. This small cap ($294 million) is being lumped in with more sneaker-centric companies. I think the sell-off is unwarranted and offers a great buying opportunity.

Nike represents less than 10% of Big Five’s merchandise, compared to 73% of footwear retailer Finish Line (NSDQ: FINL). The reason I like Big Five is partly its lower exposure to athletic footwear (28% of sales). Athletic footwear, particularly basketball footwear, can swing wildly based on the success of one new shoe introduction.

Big Five has a more balanced sales mix of 28% footwear, 52% hardware (think bats, baseball gloves, kayaks, fishing goods) and 20% clothing. It should continue to do well as competitors in the hard goods space exit the market.

The company will report earnings in early August.

Smart Sand: Crude oil continued its slide, dropping below $45, a level not seen since last summer. Perversely, the lower oil prices are a sign that demand for Smart Sand’s product is likely remaining high.

Oil prices are dropping because shale oil production has risen despite agreements in OPEC members to cut production. A recent chart in the Wall Street Journal shows the surge in shale production, particularly in the Permian Basin, an area to which Smart Sand has direct rail access. Remember, sand is heavy stuff and the further it needs to travel, the more expensive the proposition to a driller.

This stock is my worst performer by far, and I’ve been digging through all the news I can find to determine if there is some disastrous news on the horizon. Based on my analysis, I think the fundamentals for Smart Sand are sound. Obviously, the stock would act better if oil were to rise, but I do not see the current price of oil reflecting a doomsday scenario.