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Drowning In Sweat

This note was originally published October 29, 2010 at 08:03am ET

 

“Nobody ever drowned in his own sweat.” 

-Ann Landers

 

 

 

I’ve seen a lot of sweaty hockey players in my day. The stench of a few hockey bags in the back of a mini-van has definitely made a few hockey Moms nauseous, but I think Ann Landers has the greater risk management point right.

 

 

Drowning In Sweat - sweat

 

 

The Hedgeye Question of The Day: Can markets drown in the sweat of their own expectations? If you are really levered up long here. And I mean right here, right now… you better be sweating. Here’s why:

 

 

TIME

  1. Month-End markups (and Year-End for some), ends today.
  2. Mid-Term Election catalyst is gone as of next week.
  3. QG’s (Quantitative Guessing) expectations could get hammered next week.

SPACE

  1. SP500 is up +13% since Bernanke signed off on creating fanciful QE expectations in Jackson Hole (August 27th).
  2. CRB Commodities Index (proxy for inflation expectations) is up +15% since the same begging for Bernanke bailouts began.
  3. After losing over -7% of its value since Jackson Hole, the Burning Buck is bottoming on an immediate term basis (up for the 2nd wk in a row).

As global macro risk managers, measuring TIME (duration of catalysts) and SPACE (price) is obviously critical. At the same time we need to comply with the rules of Wall Street Storytelling and come up with something that the theoretical people out there can surmise as plausible.

 

How about this 3-factor model?

  1. Global Growth Is Slowing
  2. Global Inflation Is Accelerating
  3. Globally Interconnected Risk is Compounding

‘Whoa, whoa, big bone head hockey fellah – that doesn’t fit the narrative fallacy of our outstanding September/October performance run. Reign that sweaty hockey talk in before we cut your trading commissions. Oh right, you don’t have trading commissions – we’ll plug Nomura then.’

 

I didn’t sweat consensus coming off of the April highs and I’m certainly not going to now. There are plenty of clean cut contrarian signals in the marketplace today that reconcile another mean reversion move in correlations to the downside (VIX, CDS Spreads, Sentiment, Inside Selling, Volume Studies, etc…). But let’s not focus on those market-practitioner-points for now. Let’s get back to where the theoreticians need some convincing.

 

 

 

Global Growth

  1. USA: Assuming that the Street isn’t asking for a TRILLION in QE2 because US growth is accelerating, I think consensus gets that US growth is slowing. This isn’t a new concept; it’s a reminder. You’ll get the revisionist “economist” commentary on Q3 GDP this morning, but obviously today is Q4 and @Hedgeye we’re looking for another sequential slowdown to 1.3% GDP growth based on what we call our “Consumption Cannonball” estimates for the C in C+I+G for year end.
  2. JAPAN: Assuming that Citigroup’s Chief Economist isn’t joking this morning (he’s asking for “100 TRILLION” in Japanese style QE to rescue the Japanese from the broken promises of Krugman Kryptonite – yes, that’s ONE HUNDRED TRILLION YEN – a lot of Yen), we’ll assume that the Japanese stock market teetering on another crash is representative of reality. After seeing Retail Sales (September) fall off a cliff last night, Japanese equities lost another -1.8% taking the YTD loss for the Nikkei down to -12.8% (only Greece and Slovakia are worse YTD).
  3. CHINA: Assuming that the Chinese weren’t joking when they raised interest rates last week, they seem fine with the tradeoff of fighting Guido’s War (QE inspired inflation) in lieu of seeing a continued slowdown in both Chinese and Asian economic growth. From Taiwan’s Industrial Production slowing to 12.2% (SEP) vs 23.4% (AUG) to Japanese Exports continuing to slow sequentially (SEP vs AUG), this week’s Asian economic data reflects reality. Chinese stocks closed down last night for the 6th out of the last 7 days.

 

 

Global Inflation

  1. US INFLATION: Monday’s $10 BILLION in 5-year TIPs (Treasury Inflation Protection) yielded the 1st negative yield (-0.55%) ever. Yes, every Wall Street Storyteller knows that EVER is a very long time. The inflation expectations born out of QE are so high that your favorite 401k manager saw it fit to PAY THE GOVERNMENT to take your money, LOL.
  2.  GLOBAL INFLATION: Whether it was Singapore reporting that inflation accelerated to +3.7% (SEP) v. +3.3% (AUG) or India’s Finance Minister suggesting earlier this week that Indian inflation is running “double the ideal level”, I don’t see an inflation chart in the world that hasn’t moved up into the right from the Bernanke Jackson Hole lows of August. This is the birth-child of the Fiat Fools folks. Watch what prices do, not what conflicted and compromised Japanese style governments are telling you they are doing.
  3. INTEREST RATES: On the heels of continued rates hikes in Asia (China hiked last week) and Europe (Sweden hiked this week), a lot of perma-bond market bulls are all of a sudden having their worst week in a very long time. Why? Interest rates are going higher all of a sudden (yes, this does happen periodically from decade to decade). In the face of global inflation concerns, both 10-year and 30-year yields on US Treasuries are breaking out above what we call our immediate term TRADE lines of resistance of 2.55% and 3.81%, respectively.

 

 

Global Interconnectedness

  1. CORRELATION RISK: The inverse correlation between the US Dollar Index and virtually everything else (other than things with positive correlations to the US Dollar like Natural Gas) is as high right now as I have seen in my models going back to September of 2008. We’re talking correlations and r-squares ranging between 0.85 and 0.97 – mathematical monsters.
  2. CROSS ASSET CLASS RISK: Overlay the chart of Chinese equities and Copper and you’ll get the point. China correcting hard in the last week and now Copper breaks what was a significant immediate term TRADE line of support in our macro model at $3.73/pound. Proxy for Asian growth slowing sequentially into Q1?
  3. INTEREST RATE RISK: Ask Captain Stock Picker what happens to their super duper picks that are all of a sudden going up every day for the last 2 months what happens if both JGB (Japanese Government Bond) and UST (US Treasury) yields start backing up together. You know, if default risk starts getting priced into either US or Japanese sovereign yields in say the next stage of their lifetime?

 

Drowning In Sweat - Bernanke 2

 

Sweating yet? Don’t worry – it won’t kill you. Heli-Ben has bags full of “cash on the sidelines” – load up the mini-vans and plug your nose.

 

My immediate term TRADE lines of support and resistance for the SP500 are now 1169 and 1192, respectively.

 

Have a great weekend and best of luck out there today,

KM

 

Keith R. McCullough
Chief Executive Officer


THE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - October 29, 2010

As we look at today’s set up for the S&P 500, the range is 23 points or -1.25% downside to 1169 and 0.69% upside to 1192.  Equity futures are trading below fair value after a mixed finish on Thursday as the build up to next week's pivotal FOMC meeting continues to sap momentum.

 

Today politized 3Q GDP is posted with Bloomberg forecasting a +2.0% rise q/q vs prior +1.7%. Chicago PMI and Michigan Consumer Sentiment are also due for release.

  • Coinstar (CSTR) forecast 2011 EPS above ests
  • Deckers Outdoor (DECK) raised 2010 adj. EPS, rev. forecast
  • Expedia (EXPE) 3Q adj. EPS beat est.
  • First Solar (FSLR) raised 2010 EPS forecast
  • Genworth Financial (GNW) 3Q operating profit missed est. 
  • Microsoft (MSFT) 1Q EPS, rev. beat ests.
  • Monster Worldwide (MWW) forecast 4Q adj. EPS of as much as 8c vs est. 5c
  • Power-One (PWER) 3Q adj. EPS beat est. 
  • SolarWinds (SWI) 3Q adj. EPS beat est.

 PERFORMANCE

  • One day: Dow (0.11%), S&P +0.11%, Nasdaq +0.16%, Russell 2000 (0.45%)
  • Month/Quarter-to-date: Dow +3.02%, S&P +3.73%, Nasdaq +5.86%, Russell +3.68%.
  • Year-to-date: Dow +6.58%, S&P +6.16%, Nasdaq +10.50%, Russell +12.09%
  • Sector Performance: Healthcare +0.5%, Consumer Disc +0.46%, Consumer Spls +0.35%, Utilities +0.25%, Materials +0.06%, Tech flat, Financials (0.3%), Industrials (0.22%), Energy (-0.22%)

 EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: 18 (+964)  
  • VOLUME: NYSE: 1002.43 (-1.94%)
  • MARKET LEADING/LAGGING STOCKS YESTERDAY: Eastman Kodak +15.37%, LSI +7.38% and FMC +6.48%/Flowserve -12.19%, JDS -11.42% and Goodyear Tire -9.04%.
  • VIX: 20.88 +0.82% - YTD PERFORMANCE: (-3.69%) - THE VIX IS UP 10.8% THIS WEEK
  • SPX PUT/CALL RATIO: 2.22 from 2.15 +3.09% - UP EVERY DAY THIS WEEK

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 16.31 -0.101 (-0.617%)
  • 3-MONTH T-BILL YIELD: 0.13% -0.01%    
  • YIELD CURVE: 2.32 from 2.35

COMMODITY/GROWTH EXPECTATION:

  • CRB: 299.89 +0.25%
  • Oil: 82.18 +0.29% - BULLISH
  • COPPER: 378.75 +0.32% - OVERBOUGHT
  • GOLD: 1,340.88 +1.39% - BULLISH

CURRENCIES:

  • EURO: 1.3922 +1.10% - BULLISH
  • DOLLAR: 77.308 -1.08%  - BEARISH

OVERSEAS MARKETS:

European markets:

  • FTSE 100: (0.45%); DAX: (0.28%); CAC 40: (0.53%)
    European markets after opening little changed have subsequently drifted lower in a broad retreat, in light trading ahead of US GDP data.
  • Regional economic data was mixed.
  • Major indices currently trade close to session lows and peripheral debt remains pressured as spreads widen led by Greece and Ireland. All but four sectors trade lower led by banks. Healthcare and autos are the leading gainers. There are reports that EU leaders have agreed on limited treaty changes with a final decision expected in Dec.
  • Germany Sep Preliminary Retail Sales +0.4% y/y vs prior +2.2%
  • UK Sep Mortgage Approvals 47,474 vs consensus 46,000
  • EuroZone Oct preliminary CPI and EuroZone Sep Unemployment rate due at 5ET

Asian markets:

  • Nikkei (1.75%); Hang Seng (0.49%); Shanghai Composite (0.46%)
  • Markets fell with tech plays losing ground on worries about earnings while the stronger yen once again weighs on Japanese exporters.
  • Bank of Japan Governor Masaaki Shirakawa said the timing of the Federal Reserve’s policy meeting was not behind the BOJ’s decision to bring forward its own meeting to 4-5 Nov from later in the month.
  • Japan Sep core CPI (1.1%) y/y vs survey (1.0%). Tokyo Oct core CPI (0.5%) vs survey (0.8%). Japan Sep unemployment rate 5.0% vs 5.1% seq,
  • Japan Sep industrial production (1.9%) m/m vs survey (0.6%)

THE DAILY OUTLOOK - levels and trends

 

THE DAILY OUTLOOK - S P

 

THE DAILY OUTLOOK - VIX

 

THE DAILY OUTLOOK - DOLLAR

 

THE DAILY OUTLOOK - OIL

 

THE DAILY OUTLOOK - GOLD

 

THE DAILY OUTLOOK - COPPER


THE M3: OCT GGR ~19BN; SEPT S'PORE VISITATION; NEW COTAI

The Macau Metro Monitor, October 28th 2010


OCTOBER TO SET NEW RECORD FOR MONTHLY CASINO REVENUE macaubusiness.com

According to LUSA, October MTD GGR has almost reached MOP 19 BN, a YoY increase of 50%.


TOURISM SECTOR PERFORMANCE FOR SEPTEMBER 2010 STB

September visitor arrivals to Singapore registered 18.4% growth to reach 947,000, a record for September.  This month's visitor arrivals can be partly attributed to the hosting of the FORMULA 1 SINGTEL SINGAPORE GRAND PRIX, the world’s only FORMULA ONE night race.  South Korea (+63.2%), Malaysia (+40.2%), and Vietnam (+38.9%) visitors registered the highest growth; mainland China visitors increased 25% YoY.  REVPAR increased 20.7% YoY in September.

 

THE M3: OCT GGR ~19BN; SEPT S'PORE VISITATION; NEW COTAI - SINGAPORE1

 

NEW COTAI FILES PETITION FOR EAST ASIA'S SHARE IN MACAO STUDIO CITY macaubusiness.com

New Cotai has initiated petition proceedings against East Asia Satellite Television (Holdings) “for engaging in unfair and prejudicial conduct in relation to the Macao Studio City project,” in Cotai.  New Cotai seeks “an expedited hearing and order that East Asia be required to transfer its interest in the Macao Studio City joint venture to New Cotai at a price to be determined by the court.”


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Drowning In Sweat

 

“Nobody ever drowned in his own sweat.” 

-Ann Landers

 

 

 

I’ve seen a lot of sweaty hockey players in my day. The stench of a few hockey bags in the back of a mini-van has definitely made a few hockey Moms nauseous, but I think Ann Landers has the greater risk management point right.

 

The Hedgeye Question of The Day: Can markets drown in the sweat of their own expectations? If you are really levered up long here. And I mean right here, right now… you better be sweating. Here’s why:

 

 

TIME

  1. Month-End markups (and Year-End for some), ends today.
  2. Mid-Term Election catalyst is gone as of next week.
  3. QG’s (Quantitative Guessing) expectations could get hammered next week.

SPACE

  1. SP500 is up +13% since Bernanke signed off on creating fanciful QE expectations in Jackson Hole (August 27th).
  2. CRB Commodities Index (proxy for inflation expectations) is up +15% since the same begging for Bernanke bailouts began.
  3. After losing over -7% of its value since Jackson Hole, the Burning Buck is bottoming on an immediate term basis (up for the 2nd wk in a row).

As global macro risk managers, measuring TIME (duration of catalysts) and SPACE (price) is obviously critical. At the same time we need to comply with the rules of Wall Street Storytelling and come up with something that the theoretical people out there can surmise as plausible.

 

How about this 3-factor model?

  1. Global Growth Is Slowing
  2. Global Inflation Is Accelerating
  3. Globally Interconnected Risk is Compounding

‘Whoa, whoa, big bone head hockey fellah – that doesn’t fit the narrative fallacy of our outstanding September/October performance run. Reign that sweaty hockey talk in before we cut your trading commissions. Oh right, you don’t have trading commissions – we’ll plug Nomura then.’

 

I didn’t sweat consensus coming off of the April highs and I’m certainly not going to now. There are plenty of clean cut contrarian signals in the marketplace today that reconcile another mean reversion move in correlations to the downside (VIX, CDS Spreads, Sentiment, Inside Selling, Volume Studies, etc…). But let’s not focus on those market-practitioner-points for now. Let’s get back to where the theoreticians need some convincing.

 

 

 

Global Growth

  1. USA: Assuming that the Street isn’t asking for a TRILLION in QE2 because US growth is accelerating, I think consensus gets that US growth is slowing. This isn’t a new concept; it’s a reminder. You’ll get the revisionist “economist” commentary on Q3 GDP this morning, but obviously today is Q4 and @Hedgeye we’re looking for another sequential slowdown to 1.3% GDP growth based on what we call our “Consumption Cannonball” estimates for the C in C+I+G for year end.
  2. JAPAN: Assuming that Citigroup’s Chief Economist isn’t joking this morning (he’s asking for “100 TRILLION” in Japanese style QE to rescue the Japanese from the broken promises of Krugman Kryptonite – yes, that’s ONE HUNDRED TRILLION YEN – a lot of Yen), we’ll assume that the Japanese stock market teetering on another crash is representative of reality. After seeing Retail Sales (September) fall off a cliff last night, Japanese equities lost another -1.8% taking the YTD loss for the Nikkei down to -12.8% (only Greece and Slovakia are worse YTD).
  3. CHINA: Assuming that the Chinese weren’t joking when they raised interest rates last week, they seem fine with the tradeoff of fighting Guido’s War (QE inspired inflation) in lieu of seeing a continued slowdown in both Chinese and Asian economic growth. From Taiwan’s Industrial Production slowing to 12.2% (SEP) vs 23.4% (AUG) to Japanese Exports continuing to slow sequentially (SEP vs AUG), this week’s Asian economic data reflects reality. Chinese stocks closed down last night for the 6th out of the last 7 days.

 

 

Global Inflation

  1. US INFLATION: Monday’s $10 BILLION in 5-year TIPs (Treasury Inflation Protection) yielded the 1st negative yield (-0.55%) ever. Yes, every Wall Street Storyteller knows that EVER is a very long time. The inflation expectations born out of QE are so high that your favorite 401k manager saw it fit to PAY THE GOVERNMENT to take your money, LOL.
  2.  GLOBAL INFLATION: Whether it was Singapore reporting that inflation accelerated to +3.7% (SEP) v. +3.3% (AUG) or India’s Finance Minister suggesting earlier this week that Indian inflation is running “double the ideal level”, I don’t see an inflation chart in the world that hasn’t moved up into the right from the Bernanke Jackson Hole lows of August. This is the birth-child of the Fiat Fools folks. Watch what prices do, not what conflicted and compromised Japanese style governments are telling you they are doing.
  3. INTEREST RATES: On the heels of continued rates hikes in Asia (China hiked last week) and Europe (Sweden hiked this week), a lot of perma-bond market bulls are all of a sudden having their worst week in a very long time. Why? Interest rates are going higher all of a sudden (yes, this does happen periodically from decade to decade). In the face of global inflation concerns, both 10-year and 30-year yields on US Treasuries are breaking out above what we call our immediate term TRADE lines of resistance of 2.55% and 3.81%, respectively.

 

 

Global Interconnectedness

  1. CORRELATION RISK: The inverse correlation between the US Dollar Index and virtually everything else (other than things with positive correlations to the US Dollar like Natural Gas) is as high right now as I have seen in my models going back to September of 2008. We’re talking correlations and r-squares ranging between 0.85 and 0.97 – mathematical monsters.
  2. CROSS ASSET CLASS RISK: Overlay the chart of Chinese equities and Copper and you’ll get the point. China correcting hard in the last week and now Copper breaks what was a significant immediate term TRADE line of support in our macro model at $3.73/pound. Proxy for Asian growth slowing sequentially into Q1?
  3. INTEREST RATE RISK: Ask Captain Stock Picker what happens to their super duper picks that are all of a sudden going up every day for the last 2 months what happens if both JGB (Japanese Government Bond) and UST (US Treasury) yields start backing up together. You know, if default risk starts getting priced into either US or Japanese sovereign yields in say the next stage of their lifetime?

 

Drowning In Sweat - Bernanke 2

 

Sweating yet? Don’t worry – it won’t kill you. Heli-Ben has bags full of “cash on the sidelines” – load up the mini-vans and plug your nose.

 

My immediate term TRADE lines of support and resistance for the SP500 are now 1169 and 1192, respectively.

 

Have a great weekend and best of luck out there today,

KM

 

Keith R. McCullough
Chief Executive Officer

 

Drowning In Sweat - sweat


American Solitude

This note was originally published at 8am this morning, October 28, 2010. INVESTOR and RISK MANAGER SUBSCRIBERS have access to the EARLY LOOK (published by 8am every trading day) and PORTFOLIO IDEAS in real-time.

“However many people you may consult, you are the one who has to make the hard decisions. And at such moments, all you really have is yourself.”

-William Deresiewicz

 

Those were the closing sentences of a lecture that William Deresiewicz gave to the plebe class at the US Military Academy at West Point in October of 2009. The lecture was titled “Solitude and Leadership.” It was posted in The American Scholar on March 1, 2010.

 

The timing of this lecture was critical. It was given by an ex-Yale professor at a time in American history when leadership was failing us. Deresiewicz is a literary critic who has no qualms calling today’s Yalies “professional hoop jumpers.” He taught Yale kids for 10 years; his opinion isn’t irrelevant. Whether we like reading it this way or not, the rest of the world thinks we’re still failing. Americans need to stop making excuses for losers. America needs winners.

 

Winning starts by having conviction in what you do, taking a stand, and beating someone. Whether on the field or in your portfolio, you can see the score during each second of the game. Don’t blame “depressions.” Embrace adversity. Confront your opponent. You have to play this game with passion.

 

Winning continues by staying true to what got you to start winning in the first place. Grit, guts, and determination works for some. Patience, poise, and flexibility works for others. You, at the end of the day, have to focus on being you.

 

Winning becomes your culture when you inspire your teammates to walk through walls with you. You cannot do this alone. American Solitude is having as much conviction in yourself as you have in your teammates. You have to trust them if you want them to trust you.

 

I’m giving you my 3 cents on this today because I’ve been travelling the American roads less travelled for the better part of the last 2 weeks. I’ve been in 8 different states (Connecticut, New York, New Jersey, New Hampshire, Massachusetts, Maine, Florida and Missouri). I’ve met with a lot of different people. I’ve also spent a lot of time on my own.

 

American Solitude is taking the time to think. As Deresiewicz said, “solitude can mean introspection, it can mean the concentration of focused work, and it can mean sustained reading.” Solitude can also mean friendship. “Long, uninterrupted talk with another person. Not Skyping with 3 people and texting with 2 others at the same time… talking to one other person you can trust.”

 

Whether your solitude is an hour long conversation at an airport bar in Kansas City, Missouri with Howard Penney or speaking with someone you never have enough time to listen to, we need to make time for conversation. Attempting to observe this interconnected world from behind your trading or manic media desk is a very dangerous place.

 

When I get back from the road, the first thing that people tend to ask me is “what are people saying?” or “what’s sentiment out there?” As if the cosmos lined up in a way where my perfectly qualitative sample survey can be disguised as quantifiable edge. Whether it’s right or wrong, that’s Wall Street.

 

The #1 headline on Bloomberg this morning is “FED ASKS DEALERS TO ESTIMATE SIZE, IMPACT OF DEBT PURCHASES.” So, after creating massive disconnects in global expectations and seeing both inflation and interest rates rise this week, look at what the New York Federal Reserve is doing this morning – giving conflicted and compromised bankers a “survey” on the size and impact of Quantitative Guessing. This isn’t leadership – this is a joke.

 

Can you imagine if another Washington (Ron Washington, the Manager of the Texas Rangers) took a stinking survey days before game-time? What in God’s good name would his players think? Ben Bernanke has stated this plainly, so take his word for it – he has no idea what QE’s impact will be.

 

A better question to ask yourself is what aren’t people talking about? What’s the risk that the current market debate is about the bark on a QE tree as opposed to the burning forest of credibility in the US economic system? What if the Chinese or Japanese sell Treasuries and rates rip higher?

 

What people aren’t talking about on Wall Street is the crisis of leadership in this country. We’re hyper focused on what group-thinkers at the Fed will do next. At the same time, the politicized members of this conflicted institution are being held hostage to where the political wind blows. We’ve stopped thinking about re-thinking US monetary policy altogether.

                                                                                                                                                                                                                                                        

I often get asked for my advice – what would I do? First, I say stop. That’s it. Just stop what these people are doing to your hard earned savings. Put that in your survey Bill Dudley. Stop. Then start to un-learn bad policy and re-learn the lessons of the US Military’s 2009 plebe class:

 

“We have a crisis of leadership in America because our overwhelming power and wealth earned under earlier generations of leaders, made us complacent, and for too long we have been training leaders who only know how to keep the routine going. Who can answer questions, but don’t know how to ask them. Who can fulfill goals, but don’t know how to set them. Who think about how to get things done, but not whether they’re worth doing…”

 

Yesterday was a win for my team. We sold volatility (VXX) on strength and we covered some shorts (XLY and HCBK) on weakness. We bought oil (USO) and we bought casino operator Pinnacle Entertainment (PNK). If the government is going to sponsor shortened economic cycles and amplified volatility, I’ll just as soon assume the position of American Solitude and trade this market proactively. Every man for himself.

 

My immediate term support and resistance lines for the SP500 are now 1168 and 1192, respectively. In the Hedgeye Asset Allocation Model, I now have a 61% position in Cash, 24% in Bonds, 12% in International Currency, 3% in Commodities, and 0% in both US and International Equities. In the Hedgeye Portfolio, I remain short both the US Dollar (UUP) and US Equities (SPY).

 

Best of luck out there today,

KM

 

Keith R. McCullough
Chief Executive Officer

 

American Solitude - AA


Bear/Bull Battle: SP500 Levels, Refreshed...

POSITION: Short SP500 (SPY) and Short US Dollar (UUP)

 

The most important macro move in markets today is the lack of a reaction to the US Dollar being debauched.

 

With the US Dollar down over -1% on the day, and immediate term inverse correlations to the USD this high, you’d expect asset prices to inflate, big time. Instead, the US stock market has been flat to down for the better part of the day.

 

Why? Well, we’ll say this until we are Yale Hockey Blue in the face but, at a point, burning your currency eventually becomes a bad thing. Today had to represent the worst credibility day of the week for both the US Federal Reserve and the US monetary system at  large. With less than a week to game time, to see the New York Fed announce to the world that they are taking a “survey” on QE is shock and awe in and of itself.

 

If we thought this would end well, we wouldn’t stay short. Immediate term support for the SP500 is now 1169. Tops are processes, not points.

KM

 

Keith R. McCullough
Chief Executive Officer

 

Bear/Bull Battle: SP500 Levels, Refreshed...  - 1


Hedgeye Statistics

The total percentage of successful long and short trading signals since the inception of Real-Time Alerts in August of 2008.

  • LONG SIGNALS 80.64%
  • SHORT SIGNALS 78.61%
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