It's time we take a walk down main street

[Chris Johnson Penny Hawk Header](     Monday, June 12, 2023 Hello – Remember Dow 10,000? I do, the anticipation, the excitement and then the selloff. The memory of the 10,000 mark crossed my head over the weekend as I read the point-counterpoint debate over whether the market has finally entered a new bull market. You want my vote? I’ll give it to you in just a minutes, first some market data. The S&P 500 hit the 4,300 level last week for a brief moment in time and then retreated as large cap technology started to take its foot off the gas. That’s right, the same group of stocks that has lifted the market to its 2023 highs was the cause of weakness. A little ironic, but it makes perfect sense. The bigger news was the fact that the small cap iShares Russell 2000 ETF (IWM) finally saw some buying. This is the one area of the market that has remained dormant over the last six months as the rest of the major indices made a run at their highs. The lack of performance from the IWM historically signals that investors are unwilling to take risks in the market. One of my [Ten Commandments of Trading]( states that “Markets are driven higher by speculation, not fundamentals”. This means that ANY healthy bull market requires the participation of small cap stocks. We got it last week, but the battle isn’t over yet. Everything from the CBOE Volatility Index (VIX - commonly called the fear index) to the Wall Street analysts’ outlooks have taken a dramatic shift. The VIX cratered to its lowest readings since before the pandemic as it moved below 14. This rounded out a 20% drop in the Fear Gauge in just over a week. It feels like the market is over correcting, or beaming with confidence that things can only go up from here. That’s a dangerous bit of sentiment. The shift in analyst chatter is likely because so many of the Wall Street professionals have been left on the sidelines or worse, the short side of the market. Last week Bank of America switched to a bullish outlook. Who knows who will be next? Morgan Stanley and Goldman Sachs continue to look at the landscapes as filled with risks that could topple the market on any given week. I’m in the same camp. [That was just last week, Keep reading to know what I'm watching starting today]( Chris Johnson [My Live Schedule]( By texting INCOME to 21852, you are expressly consenting to be texted about investing news, trade alerts and marketing communications from Money Map Press, LLC about Money Morning's Red Alert text messaging service at the phone number you use, even if the phone number is on a corporate, state or national do not call list. You also consent and unconditionally agree to our [Privacy Policy]( and [Terms of Use]( including the arbitration provision and class action waiver contained therein. Your consent is not required to make a purchase. Msgs may be sent using automated technology. Message frequency varies. Msg&data rates may apply. Text HELP for HELP and Text STOP to STOP. You are receiving this e-mail at {EMAIL}, as part of your subscription to Penny Hawk. To remove your email from this list: [unsubscribe here]( To cancel, or for any other questions or requests, please contact our Customer Service team: Online: [Customer Service Form]( Phone: 888-384-8339 (North America) 443-353-4519 (International) Mail: Penny Hawk | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 Fax: 410-622-3050 Our Customer Service team is available Monday ­ Friday between 9:00 AM and 5:00 PM ET. © 2023 Money Map Press. All Rights Reserved. Nothing in this email should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: Money Map Press. 1125 N Charles Street, Baltimore, MD 21201. [Website]( [Privacy Policy]( | [Terms & Conditions](