BTIG Warns of June Market Reversal After 42% High-Beta Momentum Surge

1 articles · Updated · CNBC · Jun 1

BTIG told clients not to chase high-beta momentum into June after the group jumped 42% in nine weeks to record levels, a setup it said has preceded sharp givebacks.
Only two similar bursts were cited—November 1999 and January 2021—and both were followed by reversals within months, even though gains briefly extended before peaking.
The warning comes after the S&P 500 rose 5% in May and topped 7,500 for the first time, driven by AI enthusiasm and hopes for a U.S.-Iran war resolution; tech climbed 15.9% and AMD surged 45.6%.
June is historically a weak stretch: the S&P 500 averages a 0.2% gain, but loses 2.1% on average in midterm election years, while long/short momentum has fallen in six of the past nine Junes.
BTIG said a VIX near 15 and emerging divergences add to the risk that the recent momentum-led rally pauses or reverses as seasonal headwinds build.

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