This quantitative strategy says, stay bullish on stocks, and bearish on commodities as deflationary clouds gather

on our site call today From Prometheus Research, which considers it promising in an upward strategy on stocks and bearish on commodities.

says Prometheus, whose researchers use quantitative analysis to understand the underlying mechanisms driving the economy and which can indicate future market paths.

The chart below provides a summary of long, short and neutral asset positions based on their directional process:

“Currently, we are seeing a range of potential trends – most of which are skewed to the short side. The strongest signals right now are short commodities (WEAT

WEATAnd

corn

C00And

SOYB

SOYBAnd

DBC

DBC

) and long stocks (SPY

spyAnd

XHB

XHBAnd

XLK

XLKAnd

xlc

xlc

), said Team Prometheus.

The bottom line is that if these trends continue, investors could see the market continue pricing in deflation. Their Market System Monitor indicates an increased probability of low growth and low inflation (3rd column in blue) in the future:

Prometheus’ view aligns with the economic outlook expressed by Steve Englander, head of North America macro strategy at Standard Chartered, who looked at tax receipts for the month of May. “We believe that inflation and the economy are slowing more than many people in the market and in the Fed believe,” he said.

Also read: Stocks have been the only positive asset class over the past decade, adjusted for inflation

markets

Stock futures

ES00

YM00

NQ00

Negatively sloped, as bond yields

BX: TMUBMUSD02Y

Higher pay, with 10 years

BX: TMUBMUSD10Y

up 4 basis points at 3.75%. The two-year yield rose for the ninth consecutive session after the Fed’s hawkish speech. oil

CL

Flat and golden

GC00

and silver

SI00

It goes down like a dollar

DXY

moves up.

For more market updates as well as actionable trade ideas for stocks, options, and cryptocurrencies, subscribe to Investor’s Business Daily’s MarketDiem.

uproar

Louie

a little

Inventory fell after the home improvement retailer cut its full-year guidance, citing lower demand, while BJ’s Wholesale Club

BJAnd

Less after confirming its forecasts, but disappointing in sales and auto region

AZO

Disappointing sales from the auto parts vendor plummet. Dick’s Sporting Goods

DKS

The stock jumped after achieving profits and sales. Coming too, Urban Outfitters

URBN

and Williams-Sonoma

WSMAnd

with Intuit

INTUAnd

Agilent

a

and VF Corp.

VFC

after closing.

is reading: Retailers parade to grapple with inflation skepticism while Nvidia and Zoom answer questions about technology

Yelp stock

howling

It rose 13% after the Wall Street Journal reported that an activist investor is pushing the company to consider a sale to boost its value.

stock struggle

SSTK

You buy the Giphy GIF and Stickers collection from Meta Platforms

meta

For $53 million in cash. Neither company’s shares move much in the pre-market.

Lordstown Motors

Riding

Set a reverse stock split 1 for 15. Shares are down 16% on Premarket.

Cathie Wood’s ARK Investment held about $4 million worth of Palantir Technologies stock

PLTR

across several boxes on Monday.

“There is a subset of American consumers who will not drink Bud Lite for the foreseeable future,” says JPMorgan, who warns of trouble for Anheuser-Busch.

bud

BE: ABI

US earnings.

The S&P Flash Surveys on US Services and Manufacturing PMI will be released at 9:45 am, followed by New Home Sales at 10 am and before that, Dallas Fed President Lori Logan will speak at 9 am.

is reading: Does artificial intelligence cause mass unemployment? What does history say about technology and jobs

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pointers

These were the most searched indices on MarketWatch as of 6 a.m.:

tape	Security name
TSLA	Tesla
GME	Jim Stop
AMC	AMC Entertainment
nio	New
bud	Anheuser-Busch InBev
NVDA	nvidia
AAPL	apple
Mullen	Mullen Motors
AMZN	Amazon.com
PACW	Backwest Bancorp

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listening to The best new ideas in the money podcast With MarketWatch reporter Charles Pacey and economist Stephanie Kelton