Perhaps the most important news for June is that the US market closed the month above its 200-day moving average and even above its 50-day moving average, despite considerable volatility.

Equities rose slightly this month, with the S&P 500 gaining +1.64% and the Nasdaq +1.86%, while 20-year bonds lost some ground with -0.79%.

Our strategies all easily outperformed these benchmarks with Universal +2.29%, MiniMax +4.76% and Pro 2.27%.

But at the same time unemployment reached extreme levels. Countless people and companies are living on government support and are likely to do so for the rest of 2020. Protestors of all colors and from all walks of life are pushing for change for a variety of reasons.

So how can the stock market continue to rise while the world seems to be falling apart?

Well, these moving averages are watched by many private and institutional investors alike.

When we are above them, many institutional money managers who follow rule-based systems have to reinvest in stocks. So if we continue to stay above these averages next month, we may see even more cash coming out of money market accounts and returning to the playing field.

And all those small investors who have parked their cash and missed the rally now feel more and more pressure to bet on stocks as well.

So when exactly will the market break out? To be honest: I don’t know and I don’t care.

Our PentaTrader strategies will continue to avoid forecasting and will only look for the most stable mix of uncorrelated assets with the best risk/return ratio…

Stay happy, healthy and wealthy!

Omar