Closing Bell Thoughts | June 13, 2023

After a key day in the market, the results aligned well with projections, showing a subtle cooling effect. The market started strong, indicating robust performance, but soon revealed underlying weakness. Yet, there's reason for optimism, as bonds, despite decreasing prices, show promise for a potential downturn. Key indicators to monitor include risk radar and paradoxical market movements when data improves. The past 24 hours have been fairly stable for the dollar, but a significant increase in yields, while the dollar remains constant, signals a hawkish market, highlighting the ongoing inflation issue.

The stock market has been providing positive signs of economic improvement, outperforming due to the economic data not being as gloomy as anticipated. This scenario is causing a rally in the stock market and other cyclic elements. As a result, there's a strong correlation between the 10-year stock trajectory and the recent economic data, indicating an economy performing better than expected. However, this superior economic performance impacts the necessity for owning traditional safe havens like treasuries. This holds true until inflation overheats, calling for a strategic rethink. We'll explore this further tomorrow. #SPX #NDX #DJI #MarketUpdate