In this episode of Protect the Pile, the RPK, Sam &amp; Brooks discuss the market’s hidden flow machine. Brooks breaks down the June quarterly rebalance, explaining how Marvell, Flextronics, SpaceX, and major index changes forced large-scale buying, selling, and completion-index redistribution beneath the surface. The panel connects those mechanics to small-cap outperformance, mega-cap pressure, sector distortion, and the danger of fading a flow-driven trade too early. They also frame the backdrop of dollar strength, Fed balance-sheet risk, easing oil prices, financials, private credit, semis, software, Accenture’s AI-driven selloff, and Micron earnings. Hedgeye Founder &amp; CEO Keith McCullough&#x27;s long-awaited new book, “Master The Market” is available now! In this 52-page e-book, Keith McCullough distills decades of Wall Street experience into actionable insights. Discover how to navigate market cycles, avoid major losses, and invest with the confidence of a seasoned pro. Download your free copy right now. Go to Hedgeye.com/book. That’s Hedgeye.com/book. Get an investing edge on the enormous amount of money flowing into options every day, what they’re signaling, and the structural and behavioral trends driving markets higher or lower. The Market Situation Report™ includes access to a daily newsletter and weekly webcast featuring analysis of the Tier 1 Alpha team&#x27;s proprietary models. CLICK HERE to check out our product page. Turn off that tired “Old Wall” TV and tune into The Macro Show, Hedgeye’s live daily broadcast featuring key market and economic insights, investing implications and interactive viewer Q&amp;A. See for yourself why more and more investors in the U.S. and abroad have made this “must-see” market TV. We are live online every weekday morning at 9:00am ET. CLICK HERE to check out our product page.

The Rebalance Steamroller | Protect the Pile Episode 16

Hedgeye Podcasts

# Full Transcript

**Podcast:** Hedgeye Podcasts

## Transcript

Welcome back to Protect the Pile, the official podcast of Hedgeye Asset Management and the only no-nonsense investment show that cuts through the market noise with a panel of practitioners who play this game every day. We'll dissect the current landscape, debate the opportunities and risks, and help you navigate the markets using Hedgeye Risk Framework and all of our collective experience, all with the goal of protecting and growing your pile. I'm Patrick Kent, or RPK of Hedgeye Asset Management. With me, as always, is my colleague Sam Rahman.

Someday you're going to miss one of these, Sam, and I'm not going to get to say that, but for now, we can say, as always, Sam Rahman. Also, joining us is Ham Portfolio Manager, Brooks Cutright. Brooks, how are you? Very well. How are you? I'm all right. They are cutting down trees outside my house, so I apologize in advance if my dog's maniacally barking at the men taking down trees outside the house bleeds through into the audio feed.

Other than that, I'm great. We're heading into a long weekend. We are recording on Thursday, June 18th, because tomorrow is a holiday, as I said, and I am taking my daughter to ballet camp. So I will not be recording a podcast that day. We'll do it today. It is the 116th game of the 2026 market season, and right now I'm looking at the level set.

Markets up 1%. We are hanging out at around 7,500 on the S&P 500. I think that's about right. It takes us to up around 9% year-to-date. We've seen some changes going on out here. Small caps are still outperforming.

I know you mentioned this, Sam, on the Macro Show, I think this morning, that we are seeing some broadening. So we've definitely seen a little bit more breadth out there as small caps continue to outperform a little bit relative to large caps. Top five things in my notebook right now. We'll go through this. We're going to talk some of this. We'll get into in more detail.

But right now, I'd say yield curve. If I look at my notebook, Hedgeye was at the top end of the 30-year, top end of the 10-year risk range continues to basically come down on the 30-year. So we're negative now to the 30-year. 10-year, kind of hanging in there, but we're sort of neutral. We'll see where that goes.

And the two-year, we've actually been a bit more bullish. And we've seen a pickup and race, especially after the Fed meeting yesterday, where the Fed, I guess, was surprise bullish. I think the highest probability was that they do nothing. So really, it was all about the commentary. And Warsh played a dove pretty well going into this, but then sounded a little more hawkish yesterday.

But we'll cover that more in detail. U.S. dollar, the impact of that was slightly more hawkish Fed. We saw the U.S. dollar actually moved like a three-standard deviation event yesterday. It was up 1% on the day and continues that strength again today. Hedgeye's bullous on the dollar. And that certa...

The Rebalance Steamroller | Protect the Pile Episode 16

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

The Rebalance Steamroller | Protect the Pile Episode 16

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.