DC Lite #133

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1. Q2 GDP. The Atlanta Fed's GDPNow model estimate for Q2 GDP growth plunged to 1.8% from 2.7% on Friday.

2. Sell Side Indicator. "The SSI is at a 2+ year high ... [but] remains below levels of bullishness reached in 2021 when it was a hair’s breadth from triggering a contrarian 'Sell' signal at 59.8%."

3. Duration trade. "Remember the logic of long duration stocks being quality companies with cash flow visibility? Now the duration trade is meme stocks come back & the lower quality Russell 2000 rallies. The correlation between Treasuries & the Russell 2000 is of the highest in history."

4. Low vol regimes. "Low-volatility regimes can last longer than you think."

5. Strong May. "Best May for the S&P 500 in 15 years. Looking at the 10 best monthly returns ever in May showed the future returns were quite impressive. Rest of year up double the avg year (10.5% vs 4.9%) and June up 1.0% on avg vs negative."