Momentum in energy and no bid for bonds.

Key Points:

• We continue to be patient on equity exposure. Watch rates rise, particularly the 10yr over 4.5%

• Energy & commodities have been leading this market, along with short bonds.

• The current environment remains favorable for pair traders.

• Regional banks are showing weakness.

• Follow us @gmgresearch on Twitter

• High beta is under performing as rates rise quickly

• Semiconductors (Semis) need some time to come down

• Bitcoin spot ETF providers (soon), such as Fidelity and BlackRock, want a lower Bitcoin price to get a better allocation for their ETFs

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S&P: 1-month performance

Both yields and energy are climbing

A 4.5% rate on the 10-year could pose challenges for regional banks.

We are constructive on commodities reaching short-term relative highs

The same sentiment applies to XLE.

Here's an alternative perspective (as if the previous three charts weren't illustrative enough).

Apple: Once more, this served as the canary in the coalmine at the start of the month