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The MarketWatch Update

By: US RJO - Scott Magnuson, CTA, Analyst

June 9, 2026 

Will AI Become a Public Utility?

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 Today’s Market News and Trading Highlights

President Trump and left-leaning Senator Sanders seem to have found surprising common ground:

"The U.S. government should take stakes in AI companies so the public can share in the rewards". 

The thinking is that since AI is trained almost entirely on public knowledge and resources, both human and academia, then the American people should benefit from the revenue streams of immensely increased profitability going forward.  Not bad reasoning in the empirical sense, but we all know what happens once Government bureaucracies get involved in just about anything! 

Overnight gains in the equities markets were dominated once again by the tech sector, driven by a combination of sustained artificial intelligence optimism, strong corporate earnings reports, and robust economic data. The Spoo's reversed course however midsession and fragile concerns of renewed diplomatic discussions in the Middle East dominated the afternoon.  S&P traders are very high strung these days, but they're still sharp as a tack! And their modes of attack remain as intact as ever if news is bad these days... in spite of the 'Bigger Picture'. 

Some talk coming up through the cracks on Van Buren behind the Board are saying that the more the SpaceX IPO frenzy, the more the broader market as a whole will sell off...  go figure! But, sometimes the cracks in some of the streets in this town need to be heeded for what it's worth.

Any tangible progress toward a definitive regional peace agreement remains limited at best right now...  at least that's our Streets opinion...  again!

While declining energy prices and easing Treasury yields provided immediate market tailwinds, the trade remains cautious due to potential volatility from upcoming news headlines.

In the fixed-income markets, the Treasury yield curve continues to flatten. Persistent inflation anxieties are driving short-term yields higher at an accelerated pace compared to the long end of the curve. Market participants are closely monitoring upcoming macroeconomic data, with the consumer inflation report scheduled for release tomorrow morning and wholesale inflation figures following on Thursday.

Strategic Geopolitical Realignment

On the geopolitical front, Chinese President Xi Jinping conducted a rare state visit to North Korea to reinforce Beijing's traditional influence over Pyongyang. This diplomatic maneuver serves to counter Russia's recent efforts to build closer ties with Kim Jong Un, highlighting the deep-seated, systemic distrust that persists between China and Russia despite their recent partnership. Beijing seeks to mitigate the strategic risk of a pro-Russian North Korea, recognizing that Moscow's current dependence on Chinese support could diminish significantly once the conflict in Ukraine concludes.

Other than that, it was a rather featureless day across the board today... or as we on LaSalle Street often say, 'Helium was up, Feathers were down and Paper was stationary'.  That always sums it up best. 

More time is devoted tonight to a developing opportunity on the short side of the July Cocoa featured below. Sugar and Cattle updates follow... 

(source contributors: Reuters, Bloomberg, WSJ, St n X- MI, AP, BBC, LME, CME Grp., ICE, FCL Ltd. CNN)

Tomorrows Key Trading Reports

8:30 ET:  CPI  For: May | Trading Impact: High | Forecast: 0.6% | Prior: 0.6% 

08:30 ET:  Core CPI  For: May | Trading Impact: High | Forecast: 0.4% | Prior: 0.4% 

10:30 ET:  EIA Crude Oil Inventories  For: 06/06 | Trading Impact: High | Forecast: NA | Prior: -7.97M 

(source: Briefing Data Svc) 

New Trading Suggestions

July Cocoa:  Ready to Break Critical Support?

Any close now below the 50 DMA will be the last towel in the exuberance of the May failed rally. 

Here's the skinny on the short traders perspective: Classic set up for a return to value.

Cocoa prices continue tumbling from historic peaks due to the combination of rising global supplies and softened demand. Supplies are ramping up, particularly with increased shipments arriving from the Ivory Coast, as favorable weather has boosted crop yields. 

Add to that this months data so far showing a decline in cocoa grindings—a key measure used to track how much cocoa manufacturers are processing—due to tight profit margins and higher costs of production.

The extreme price spikes seen in previous years forced major chocolate producers to raise prices, or shrink the size of their products and hope nobody notices.  Have you seen the size of regular Hershey's Chocolate Bar lately in the checkout aisle?  Pathetic! 

Well, no surprise this is leading to a drop in consumer chocolate volumes.  That in the college Economics 101 textbooks I began learning from is known as: Demand Destruction.

In anticipation of the 'potential' breakout short bias, consider selling the July Cocoa at 3730 Stop GTC.  If filled risk only to 3860 initially.  First downside objective before trailing that stop would be a price print at 3640. 

This trade may not occur and if it doesn't by close of business this coming Friday, we'll reassess it's potential for next week or cancel it all together.  For now we'll just place the order, watch with patient anticipation. 

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Live Cattle Update: 

If not already working an order, consider selling the August Live Cattle at 240.00 OCO 236.00 SCO day order only.  (your broker will be able to handle a stop-close-only for you as a part of their full-service duties). If filled risk to 242.40 initially. First objective is 232.00.  (see June 8 newsletter for full explanation and audio discussion)

Today's low was 235.15, below the 236.00 critical price but the close was 239.70.  Since that is higher than 236.00 the order should not have been executed on the close of todays market session. 

 (chart graphics: ICE Data Svc's-FS, Bloomberg, FCtL Ltd, Reuters, CQG)

*    *    *    *    *  

 Current Open Trades and Position Management

Continue working an open order to sell the August Live Cattle at 240.00 OCO 236.00 SCO now on a GTC basis. If filled risk to 242.40 initially. First objective is 232.00.  

We offset our long October Sugar from 15.10 and 14.70 and reversed to the short side at 14.48.  Place a buy stop order on this new position at 14.95 GTC.  First downside objective is 14.10.  

Market Watch-List of Developing Opportunities

  Dec Corn, July Cotton, July Copper, July Cocoa

________________________________________________________________________________  

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Scott Magnuson, CTA : 888.861.1755

scott.magnuson@stonex.com 

All futures and options strategies presented involve risk of loss and do not take into account individual investment objectives or risk tolerance. Trade responsibly. The strategies provided do not account for commission deductions and fees. Past performance is not indicative of future results.
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