Rick Bensignor - Small Cap Rotation, Tech Stocks, Interest Rates, Copper, Gold

Rick Bensignor, President of Bensignor Investment Strategies joins us for the special Sunday Editorial to share his trading strategies and outlook for small cap stocks, tech stocks, interest rates, copper and gold.  

 

We kick off with the impact of lower-than-expected inflation CPI data on July 11th, which triggered a rotation from big tech to small caps. Rick elaborates on his tactical moves, including buying the Russell 2000 ETF (IWM) and shorting QQQ. The conversation transitions into the sustainability of the small-cap rally, heavily influenced by expectations of the Federal Reserve lowering interest rates. 

 

Rick then provides an analysis of bond yields, particularly focusing on U.S. 10-year Treasury yields and the critical support level of 4.13%. He highlights the potential implications if yields break below this level. Next, Rick discusses the broader market sentiment, including the rotation into various sectors like financials, smaller tech stocks, and REITs, driven by the anticipation of lower rates. Rick contrasts this with the concept of yield curve un-inverting and what it signals for the economy. 

 

The discussion then shifts to commodities, with a detailed look at copper and gold markets. Rick explains the speculative nature of the recent copper rally and its subsequent correction, emphasizing the role of China and market sentiment in driving these moves. For gold, Rick maintains a positive long-term outlook but advises cautious short-term trading, noting the importance of key levels and the influence of the dollar and bond yields.

 

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