Edge Over Crowd

BREAKING: May PPI Inflation surges to 6.5%, above expectations of 6.4% and the highest level since November 2022.

Core PPI Inflation came in at 4.9%, in-line with April's revised levels.

PPI inflation is now at pandemic stimulus levels.

Odds of rate HIKES continue to rise.

🇺🇸 U.S. CPI data just released:

US CPI increased 0.5% MoM (vs 0.5% MoM expected) and 4.2% YoY (vs 4.2% YoY expected) in May.

US core CPI increased 0.2% MoM (vs 0.3% MoM expected) and 2.9% YoY (vs 2.9% YoY expected).

Stocks are dumping. $2 trillion wiped out from US stock market today. S&P 500 down 2.6%.

Crypto is dumping. Bitcoin crashed under $60,000. Over $130 billion wiped out from crypto today.

Gold is dumping. Gold down 4% today.

Nasdaq-100 down -4.8% and Nasdaq down 4.2% today.

$1 trillion wiped out from Semiconductor stocks today. PHLX semiconductor index down over 10%.

One the worst day !

The US economy adds 172,000 jobs in May, crushing expectations of 85,000.

The unemployment rate was 4.3%, in-line with expectations of 4.3%.

How leveraged trading works :

Imagine you have £100. With a 5x leveraged CFD, you can control £500 worth of stock - the broker essentially lends you the rest.

If that stock goes up 10%, you don't make £10 (10% of your £100). You make £50 (10% of £500). That's 5x the return on your money.

But here's the catch... it works the same way on the downside.
If the stock drops 10%, you lose £50. That's half your £100 gone on a 10% move. A 20% drop wipes you out completely.

• You can go long (betting it goes up) or short (betting it goes down)
• Most platforms will automatically close your position if losses approach your deposit - called a margin call or stop out
• CFDs are exempt from stamp duty in the UK, which is a small bonus

And that's why you always want to hedge yourself - keep some uninvested cash on the side so that bigger moves don't wipe you out completely. Think of it as your safety buffer. If a position goes against you, that reserve cash means you live to trade another day rather than blowing up your whole account on one bad move.

Bottom line: 5x leverage amplifies everything, wins AND losses. Size your positions accordingly, always use a stop-loss, and never put all your cash to work at once.

8 straight green weeks. The rally just keeps pushing higher.

The S&P 500 has now recorded its longest winning streak since 2023, with another positive week putting it among some of the rarest runs seen since 1928. Meanwhile, the Dow continues printing fresh record highs, and most sectors are still moving upward together.

Corporate earnings remain strong too. The majority of companies outperformed expectations, marking yet another quarter of powerful growth.

But despite the market strength, public confidence tells a completely different story.

Consumer sentiment has dropped to one of the weakest levels on record. Fund manager positioning is flashing warning signs, and divisions inside the Fed are becoming harder to ignore.

Markets are euphoric. The mood outside Wall Street is not.

Momentum is still alive — but the bigger question is how much longer this disconnect can last.

Watching closely: $SPY $QQQ $DIA $VOO $IWM $XLY

When a new Fed chair took over?

Fed Chair Transition Temporary Market Decline?

Eugene Meyer Yes
Eugene Black No major immediate decline
Marriner Eccles Mild
Thomas McCabe Minor
William McChesney Yes
Arthur Burns Yes
G. William Miller Yes
Paul Volcker Yes
Alan Greenspan Yes
Ben Bernanke Yes
Janet Yellen  Mostly stable
Jerome Powell Yes

So roughly 8–9 out of the last 12 transitions had noticeable market weakness or corrections after the new chair took office.

🇺🇸 INFLATION HOTTER THAN EXPECTED

Core PCE: 3.2% vs 3.0% forecast.
Labor market still tight at 213k jobless claims.

Gold jumping to $4,600. Brent crude at $122.
Markets repricing fast