Postcards: The June Watch List

Keep the rules simple, and then consider using puts and credit spreads to your advantage.

Market Update: There’s been a surprising rotation to the small-cap side, with money flowing out of the larger caps and a greater focus elsewhere. We’re witnessing our first losing week for the S&P 500 in six weeks, a signal of solid liquidity off the back of the post-tax day payouts. That said, some softness in the cryptocurrency and gold markets raises questions about the impact of interest rates. Remember… higher for longer is still the mantra. But we might be talking about “How High” and the threat of another rate hike in 2025 if they don’t get spending under control. Our intraday signals remain Yellow.