A healthy rotation is underway across equity markets.

Leadership has swung toward cyclical value-oriented names over the trailing two weeks. Small-cap Energy, Materials, and Financials are outpacing the year-to-date top performers (Large-cap Tech). It’s a clear expansion in participation and a hallmark characteristic of any bull market.

But if cyclical stocks have a chance at participating over the long haul, we want to witness similar strength from corresponding commodity markets.

And we are…

Check out rebar futures posting a potential failed breakdown: 

The bounce in rebar fits with the strength in small-caps and Emerging Market equities. If industrial metals such as rebar start catching higher, procyclical commodities and their related stocks likely follow suit…

What about Dr. Copper?

Copper...

From the Desk of Kimmy Sokoloff

With sloppy Friday action like this, it's about a 50-50 shot we do well.

Happy Father’s Day, and have a great long weekend.

That company is still a thing? I thought the iPhone killed it? ~ JC during The Morning Show on 6/15/23

Yep. Today's trade is a play on a stock in a company we were all kind of surprised still exists, and even more surprising that is doing well!

Upon further digging, we learned the company has handled the pivot away from online maps for car drivers into things like GPS for boats, golfers, and wearables!

We've adjusted a position in the Paid-to-Play portfolio today:

The most significant transaction on today's list comes in a Form 4 filing by Dan Wilks, the manager of THRC Management

Wilks revealed a purchase of 285,059 Profrac Holding Corp $ACDC shares, equivalent to roughly $3.8 million.

From the Desk of Kimmy Sokoloff

Happy Father’s Day! Have a great long weekend!!

Today is quad witching, so we could see a choppier market and lots of volatility.

I recently read a book that was recommended to me by a friend in my traders meetup group.

Once I picked it up, I couldn’t put it down.

Here are some of my favorite quotes I continue to meditate on. I think you will also go down rabbit holes while pondering them…

From the Desk of Kimmy Sokoloff

I haven't seen a presser of a market like this in a very long time. People are piling in.

It feels like everyone who was late to the party is trying to play catch-up.

From the Desk of Ian Culley @IanCulley

Forget about Wednesday’s FOMC decision.

Yes, investors continue to react, unpacking Jerome Powell’s words while looking ahead to next month’s meeting. It’s a never-ending cycle proffered by unrelenting data.

But it’s this constant flux that makes the market the most engaging puzzle in the world (aside from life, of course).

Yet one piece of the puzzle renders the chaos manageable… 

The closing price.

That’s the main reason I choose to devote the majority of my energy to price charts. The closing price is seldom revised, acting as an anchor during turbulent conditions. 

Call me old school, but price is never wrong.

With that in mind, let’s take a fresh look at a key intermarket ratio many (including me) have labeled “broken”...

I'm talking about regional banks versus REITs.

This ratio belongs to a long list of intermarket relationships that haven’t...

We've adjusted a position in the Paid-to-Play portfolio today:

The most significant transaction on today's list comes in a Form 4 filing by Diversified Healthcare Trust $DHC director Adam Portnoy.

Portnoy revealed a DHC purchase worth roughly $17.9 million.

From the Desk of Kimmy Sokoloff

The market has a hangover after yesterday's Fed meeting. No rate hike, but Powell might continue to hike down the road.

The indices are extremely overbought. $TGT and $NKE had their first real up days.