Get the Full Free Version of The Art of the Bubble Newsletter here.

The Macro Situation

“Slow and steady wins the race” (adage)

• the idea that a slow and persistent effort is better than a quick and sporadic one;

• a model that works given the assumption of unlimited time;

• the 2024 amendment to the Fed’s statutory mandate.

                                             ― New Entry in the Updated Devil’s Dictionary

Despite the meteorological forecasts for the summer, things seem to be cool and copacetic. Signs this week pointed to inflation moderating. It's the little things that count:

• The May Consumer Price Index rose by 3.3 percent compared to the same period last year, which is less than the 3.4 percent increase predicted by economists and also a decrease from the April figures.

• The Producer Price Index, which is a measure of wholesale prices, declined 0.2% in May compared to a 0.5% rise in April.

• Jobless claims hit a 10-month high (242,000), which was 13,000 more than predicted.

But just to quell any market exuberance, the Fed indicated that there will most likely be only one rate cut this year.

According to the Fed Watch tool, which tracks the prices of various futures contracts related to interest rates (particularly the federal funds rate), the chance for a rate cut in September is 61.1%.

Up to the week ending on June 7, 2024, the ANFCI has moved to -0.53, which is a -0.02 increase from the previous week and a good sign for the investment climate.

Core Assets Update

Gold (2348.40) spiked following the PPI numbers that indicated the economy might be slowing down. However, positive sentiment shifted in favor of the US dollar (105.52) by the end of the week.

Crude Oil (78.49) remains in a holding pattern before the official start of summer, when increased travel should push the price up. Looking at the big picture, the International Energy Agency issued its annual report, noting that an increase in US-led oil production could result in a supply surplus to the tune of 8 million barrels per day by 2030.

The 10-year Treasury yield (4.221%) slid this week (as its price rose) due to indications that inflation is cooling.

                                             -Todd Mei, PhD and Sebastian Purcell, PhD

AI Sentiment Report

The following sentiment scores use AI to track sectors as leading indicators. (Lesson 4 of The Art of The Bubble covers the selection of lead indicators for bubble trades). The scores are most indicative for the next day of trading (a Monday), but they appear to set the general tone for the next week.

-The Research Team:

                     Dom Viera, Samantha Russell, Nicole Zinuhova, Michelle Milan

Free Stuff!

1. Kaze NFT whitelist:

Join our Zealy campaign for a Kaze NFT whitelist. 

New Invitation Link

2. Rebates:

•  TradingView Rebate (Save $30)

•  Trojan Bot (Save 10% per trade)

•  Prodigy Bot (Save 10% per trade)

All proceeds go back to funding the community pool.

Note: we’re migrating our newsletter host, so formatting is changing a bit.

Happy Trading!!

Join us on Discord

Think About Paid

Our paid plans make use of the same base algorithm that our hedge fund, 1.2 Capital Management does, but modified in timeframe so you don’t have to stare at your screen all day. We have BOTH stock and crypto strategies.

Below is a recent comparison of our top trading strategies relative to BTC and ETH since the beginning of the current market cycle.

Discover our plans and upgrade !

That's it for today! 

Don't forget to join us on Discord if you haven't already.

Happy trading!!
-The 1.2 Labs Team

DISCLAIMERS

This newsletter is provided for educational and entertainment purposes only. Robin Technologies and Analytics LLC is the firm that distributes The Art of The Bubble products. The firm does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Robin Technologies and Analytics LLC registered as an investment adviser or broker-dealer in any jurisdiction.

You should expect no financial returns one way or another based on the statements contained herein. These points hold equally for any statements that could be attributed to The Art of The Bubble, 1.2 Labs, or any related business entities or personnel operating in association with Robin Technologies and Analytics LLC. If you decide to buy or invest in anything, then your returns and potential losses are your own. No statements about taxation are taxable advice and you are encouraged to consult your own tax professional. No statements about laws are legal advice and you are encouraged to consult your own professional legal counsel. You are finally also encouraged to do your own due diligence before investing in anything consulting with appropriate professionals as needed.

Benchmarks and Data Sources

All data not otherwise specified (or obvious from context) is taken from TradingView.com.

The cryptocurrency benchmark used is an equally weighted mix of BTC and ETH. While the benchmark for stocks used is the Nasdaq 100.

Conflicts of Interest

All contributors to this newsletter should be considered active investors. Because the strategies pursued are often quick, contributors may or may not own the stocks or coins discussed by the time of reading. However, readers should assume that any coins, stocks, or other items discussed are owned by the contributors for conflict of interest purposes.

Company policy prevents accepting any funds for the discussion of specific coins or stocks.

By opening and reading this newsletter you agree to further the terms and conditions set forth for 1.2 Labs educational services and data services. Read those terms and conditions here.