The stock market has certainly been choppy over the past 7 days with three up days and four down days. The S&P 500 is in the same area as it was on May 27. Coming off the first rally from a very volatile bottom, this can be expected. Ultimately, the resolution should be to the upside in the not too distant future. We know that biotech, new innovation and software were hit the hardest. And those groups seem to be quietly awakening now.

I am encouraged that small caps are leading and growth is at least as good as value. I am discouraged that high yield bonds have completely fizzled after soaring just a few weeks ago. As I said in Q4 and throughout 2022, this is a choppy, sloppy and frustrating year that will require patience. It is not 2008.

I pay acute attention to social mood and I found it fascinating that pop music star Cardi B tweeted about recession the other day. Even more so, I was asked about it on Yahoo Finance. There has been a record number of Google searches for “recession”. That tells you what’s on people’s minds. The masses are massively negative and that usually leads to a rally in stocks.

On Monday we bought levered Russell 2000 NDX. We sold EMB and levered inverse Russell 2000 NDX. On Tuesday we bought IWO, XRT, BK and TQQQ. We sold IJJ.