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"This is the most extreme yields-stocks relationship this entire market cycle"
DC Lite #617
Daily Chartbook
June 10, 2026
Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights.
New studies published recently:
1) Tue (6/9): Gold Closes < 200SMA After ≥ 500 Days Above It (n=4)
2) Fri (6/5): SPX RSI Goes From Overbought to < 50 in 3 Days (n=33)
3) Wed (6/3): SPX Rolling 2-month Change Exceeds 16% (n=29)
1. CPI. "Inflation breadth has increased: the share of CPI items with annualized inflation of 4% or more rose again in May. Not to the level of what we saw in 2022-24, but moving in the wrong direction."
2. Speculators vs. crude oil. "The dumbest money on earth has never bet this aggressively against crude oil."
3. Sovereign debt sales. "Sovereign issuers have sold $504 billion of debt so far this year ... That's more than in the first half of 2020, when nations were paying to support their economies during Covid-19 lockdowns."
4. Bonds vs. stocks. "The relationship between what the US government's debt is doing and stock prices has flipped in a big way. In fact, this is the most extreme yields-stocks relationship this entire market cycle."
5. Global profit growth. "2027 earnings have been revised up by roughly $580 billion this year, with 75% of that coming from the top 1% of stocks in MSCI AC World, who have been upgraded 33% this year. The remaining 99% of stocks have been upgraded by just 3%."
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