Monthly Update, May 2025 - Soaring Pelican

10 Jun

10Jun

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Recent Program PerformanceMarket volatility in the S&P 500 suddenly dropped, leading to a pullback in our systematic performance. Intraday price movements lacked follow-through, with most of the action occurring overnight. Despite this, our overnight systems remained profitable—successfully capturing one strong move while getting stopped out on another.The Soaring Pelican methodologies, like any stock or market, experiences both expansions and contractions in performance. Long-term investors have used these pullbacks as opportunities to add to their positions.From time to time, we’ll share a snapshot of daily performance (see current chart below). While past performance is not a guarantee of future results, many traders might view the current setup as a potential "buy" signal.

The Big PictureWhat started as a short-covering rally quickly turned into a painful squeeze for bearish traders, as the S&P 500 unexpectedly gapped above its 200-day moving average. This move caught many pessimists off guard—especially those who had bet that the new president would trigger an economic downturn.The surge was driven by easing trade tensions and a temporary truce with China over tariffs. Markets appear to have welcomed the news, recognizing that the situation has stabilized. It’s now evident that tariffs are generating significant revenue, bringing in billions of dollars.

Our OutlookThe chances of a sustained downtrend have diminished for now, as the S&P 500 finds support at its 200-day moving average. Market breadth is improving, and leadership is returning to familiar territory—tech stocks are leading the way, and even small caps are showing signs of resilience.Another positive for equities is the recent pullback in the U.S. dollar, which helps make U.S. markets more attractive to foreign investors.That said, the sharp decline earlier this year caused considerable damage. It will take time for market participants to rebuild confidence.
Best regards,

Sam Beckers and Dario Michalek
Soaring Pelican, LLC
805-322-7393

www.soaringpelican.com

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. FUTURES TRADING IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK.

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