NY Chapter Meeting – Current Market Discussion for June 2020

June 17, 2020

Dan Russo, CMT

Portfolio Manager & Director of Research, Potomac Fund Management

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In this panel discussion hosted on June 11, 2020, the New York Chapter featured three distinguished Chartered Market Technicians; Paul Ciana, Dan Russo, and J.C. Parets with Tyler Wood as the moderator.

Dan Russo, CMT discussed how he is unconvinced that the recent rotation into cyclical stocks and interest rate-related intermarket relationships is the real deal. Given the weak global growth environment, Dan focused the last 15-months on owning the growth aspects of the stock market…a strategy that has worked well and he expects it to continue working well. 

Rather than go through dozens of charts like Dan and JC, Paul Ciana, CMT chose to speak off-the-cuff about several of the major themes he’s seeing and questions he’s getting from clients. Before getting into it though, he gave three pieces of advice:

  1. never show up to a meeting without your charts
  2. hang your CMT Designation proudly
  3. there’s always a narrative in the market, and more often than not there are two prevailing narratives

Paul went on to explain why the recent volatility in the currency space may have been caused by positioning and sentiment unwinds and discussed other popular FICC-related topics.

Last up was J.C. Parets, CMT. Before jumping into his presentation, J.C. reminded us that Technical Analysis doesn’t give us all the answers we’re looking for, but it helps us ask the right questions. He then shared many of the questions he’s asking about the current market environment and finally discussed several potential trade setups on the long side that will likely perform well if the broader market doesn’t continue to correct to the downside.