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Weekly Memorandum 6/8/2020

Equities are up nicely again in pre-market, with the Dow leading the way. All indices finished off last week with spectacular gains, furthering the notion that the Fed's actions to address liquidity issues back in March worked.

Crude Oil also performed well last week, but is down slightly to start the week. T-Notes were slammed last week, but the Fed remains committed to QE-Infinity. It will be interesting to see how much they would allow rates to rise. Inflationary pressures seem to be creeping into the economy because the likelihood of the Fed raising rates has increased lately.

Gold and silver were down last week, but cryptocurrencies were up slightly. The dollar fell some more, but saw a nice reversal on Friday off the back of major job gains in the month of May, which were largely unexpected.

As more and more people finally but into this rally, we are starting to look at the possibility of a short-term top here in the near-future. However, momentum remains fairly strong, and we are seeing sector rotations into areas that were lagging the market greatly.

We also note that many of our stock picks from the Mercator Letter have performed very well lately, specifically names like COUP, MDB, and QLYS. Stop losses have been raised to protect the bulk of those gains.

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