Market in "waiting" mode

June 2nd, 2024 - Update

Very quick update this time around. The Nasdaq closed in the red (-1.1%)

We had a new reading on core inflation (PCE) which was in line with expectations.

The 10-year treasury yield was up (1%) for the second week in a row which is not what I want to see.

Oil is about flat for the week (-1%), a reason to stay on the optimistic side regarding inflation.

My take:

• I see signs of credit tightening that are starting to take a toll on credit conditions: nothing to be alarmed about yet, but I want to see rate cuts coming sooner rather than later

• Inflation is sticky at around 3.5% and we need to see it resume its trend toward 3% or lower

• We are in an environment where you don’t want to see too bad economic data; slightly bad is good, too bad might get everybody into panic mode

• Until proven otherwise, I still think this environment is favorable for stocks although the market has been very selective

PORTFOLIOS

1. MY 2024 PICKS

Here is an update after 5 months on my 2024 picks:

My Portfolio is Up 36%, more than 3X the SP500 so far. Let’s see how it goes in June. Many months to go before calling it a victory : )

2. 10X LARGE CAP MOMENTUM
   

Here I am fully invested. I updated my Stop Loss levels.

3. 10X SMALL CAP MOMENTUM CAP

Here my ML 0.00%↑ order was triggered last week. I am doing nothing this week as I have 5 open positions in the Portfolio which is the maximum number I want to handle at any given time.

WATCHLIST

A few names I like here: CHRD MRO BCRX BLBD SRPT TTWO WLDN SRPT

That’s all for the week!

-

Important: This is not investment advice. Consult a licensed financial advisor before making any investment decision.