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Taking Sanity Seriously

“Everything is changing. People are taking their comedians seriously and the politicians as a joke.”

- Will Rogers


This weekend during his 200,000 plus people “Rally To Restore Sanity And/Or Fear”, Jon Stewart joined the ranks of calling the press out as the Manic Media. “If we amplify everything, we hear nothing,” he said. “The press is our immune system. If it overreacts to everything, we eventually get sicker.”


I don’t think he was precluding the financial media from that statement either. At least in politics there’s a core competency in being raging Republican or Democrat. In the arena of finance, the incompetence of academic dogma and Keynesian policy is pervasive. What sell-side lovers amplify as “news” becomes a contra-indicator that we make money from. Thank God for that.


This week brings us the Super Bowl of market hope:

  1. Tuesday = Midterm Elections
  2. Wednesday = Federal Reserve’s Decision to Debauch The Dollar
  3. Thursday = European Central Bank and Bank of England Fiat Fool statements

Then on Friday, everyone will come back from their mid-term election and Dollar debasement parties in Washington DC to be hung-over by Hedgeye reminding them that neither Republicans or Quantitative Guessing will result in anything more than what we already have in this country, Jobless Stagflation.


Jobless Stagflation? What’s that? Don’t ask Barron’s – they decided to title this weekend’s cover story “Bye-Bye, Bear”…


No, I couldn’t make that up if I tried… and no, I don’t think the probability is very high that Barron’s is a leading indicator on the US stock market’s next major move either.


Let’s start Taking Sanity Seriously and understand what’s occurred since Ben Bernanke exercised his conflicted and compromised right to give the perma-bulls and financial media alike something to cheer on since the Jackson Hole Groupthink Summit on August 27th:

  1. The SP500 is up +13%
  2. The CRB Commodities Index is up +14.5%
  3. The Input Price component of Chinese manufacturing is up +15.5%

Seriously? Yes, this is a very serious level of expedited inflation folks.


But what does it mean? Doesn’t this mean that Burning The Buck at the stake is a credible, everybody-wins, strategy? Or does the Manic Media on the Western side of the world get paid to suspend disbelief and take the Groupthinker’s word for it that this is going to end in jobs?


The Manic Media doesn’t do buy-side equations, but we’ll give them another one to chew on now that our clients have their positions on:


QG = COGS inflation


Seriously. It’s sort of one of those IF/THEN equations that they can build upon using the equation we gave them a few weeks back:


QE = i


Take these equations very seriously.


If, Quantitative Easing (QE) = inflation, and QE = QG (Quantitative Guessing), then QG = COGS (cost of goods) inflation. I know, I know. This is as brilliant a mathematical revelation as Morgan Stanley cutting its US Dollar forecast this morning “As The Federal Reserve Sets To Ease.” That and “Thirty Three Hour Race May Induce ECB Surrender on Weak Dollar” are top Bloomberg headlines this morning, fyi.


Notwithstanding the analytical incompetence of the political media on financial matters, this turns Jon Stewart into a very savvy politician, of sorts. Or is he a politician? Maybe he’s just simplifying the common sense signals that normal human beings have in their heads as Washington attempts to fear-monger you into believing that there is only deflation and, as a result, you should earn 0.17% on your hard earned savings in perpetuity?


Here’s what the Chinese think about this American style Burning of the Buck this morning:

  1. “US Dollar depreciation exacerbates currency war” –China Trade Ministry
  2. “China should buy gold, oil, to avoid US Dollar losses” –Chinese Business Reports
  3. “Yuan deposits rise as Hong Kong currency peg debate heats up” –Bloomberg Asia

Seriously? Yes, the Chinese  are seemingly sane folks.


Oh, and they have the real-time price data to support it. There was a creepy little Halloween critter in China’s better than expected PMI reports last night (54.7 OCT vs 53.8 SEP) called COGS (cost of goods) that showed input prices rise to 69.9 in October versus 65.5 and 60.5 in September and August, respectively. At the same time, South Korea released a new high in their inflation report of 4.1% overnight versus 3.6% in September.


If you’re taking the global interconnectedness of markets and prices seriously, you’re seeing inflation rise, globally, as joblessness stagnates locally. This is called Jobless Stagflation. And we don’t think the Manic Media’s stock market cheerleaders will make that go away by the end of this week.


My immediate term support and resistance lines for the SP500 are now 1169 and 1192, respectively. In the Hedgeye Portfolio, I remain short both the US Dollar (UUP) and the SP500 (SPY). I’ll be a seller of all buy-and-hope oriented strength this week.


Best of luck out there today,



Keith R. McCullough
Chief Executive Officer


Taking Sanity Seriously - SERIOUS

The Week Ahead

 The Economic Data calendar for the week of the 1st of November through the 5th is full of critical releases and events.  Attached below is a snapshot of some (though far from all) of the headline numbers that we will be focused on.


The Week Ahead - cal1

The Week Ahead - cal2

We Are Long Oil As A Weak Dollar Dominates

Conclusion: Even though inventory is at a 10-year high domestically, the U.S. dollar continues to drive the price of oil.


Position: We are long oil via the etf, USO.


Yesterday, we added a position in oil to the Hedgeye Virtual Portfolio via the etf, USO.  One of the primary reasons we are upping our allocation to commodities is to protect ourselves against inflation.  With the Fed continuing to signal that dollar debasement will continue via quantitative easing, those commodities that are priced in U.S. dollars really only have one direction to go . . . up.


In addition to the position in the USO, we also have positions in two oil producers, Suncor (SU) and Lukoil (LUKOY).  Our Energy Sector Head Lou Gagliardi described these two stocks this way in a recent note:

  • Suncor (SU) – “This veteran plays the game the old way, hard and dirty, the son of miners and oil sands. A patient hitter, who likes to work the count into long lead projects and wait for his bitumen pitch, he hits from both sides of the plate, mining and in-situ, a power hitter, who plays the gaps and hits for average. SU can hit the ball deep into the resources, a steady glove he brings economies to scale at third base.”
  • Lukoil (LUKOY) – “This old veteran Odeki Russo, set all-time batting records back in his home country Russia. A long ball hitter, Lefty likes to go deep into the resources, excellent balance sheet, with solid arm can throw into International plays. A truly five tool player, deep assets with speed on the base paths, strong glove balance sheet, field a deep discount, throws well with great upside, and brings economies to scale in the field.”

If you would like more information on these stocks, please email and we can plug you in directly to our global energy team.


Setting the impact of a weaker U.S. dollar to the side, the short term fundamentals for oil are not overly bullish, specifically as it relates to inventory. Crude oil inventories in the United States are now at 366.2 million barrels, which is up almost 8% y-o-y.  In fact, days of supply is at almost 26.1 days, which is literally the highest level of days of supply on hand in the last decade.


Below we’ve charted oil versus the Canadian Dollar / U.S. Dollar exchange rate.  The chart tells us a few things.  First, as we note above, a weak dollar will lead to a higher price for oil.  In addition, it will lead to an increase in those currencies that are supported by high oil prices, such as the Loonie and the Ruble.  This of course also creates more risk as we noted in the Early Look today, which is that of interconnected global risk.  So, while we can be long commodities due to dollar weakness and to protect against inflation, we also must be aware of the increase correlations that are occurring globally and the fundamental supply / demand backdrop.


Daryl G. Jones

Managing Director


We Are Long Oil As A Weak Dollar Dominates - DJ comm

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The Green Lobby may impact the hospitality industry.



Roger Dow, President and CEO of the US Travel Association, believes an “overzealous” environmental policy could be the next obstacle for the travel industry.  He said 72 government agencies have already cut their travel budgets because of environmental concerns.  While this isn’t enough to move the needle, it could turn into a troublesome trend, particularly if environment groups begin to target private enterprises about fuel guzzling travel habits of their employees.  Remember the teleconferencing scare a few years ago?  Those concerns could be revisited.  On the bigger picture, Dow does not believe the travel industry will rebound to 2007 levels until 2012-13.



October 29, 2010





  • In the process of providing an initial outlook for 2011, Deckers’ management highlighted that expected input cost increases were now likely to come in at the higher end of their original +5%-10% range. While hardly a surprise, we note that some companies have deliberately avoided the issue on recent calls. That said, DECK is confident it can maintain current margins despite higher than expected cost inflation due primarily to aggressive growth in its retail business, which accounts for only ~10% of the business currently, but was up 60%+ from last year.
  • In addition to the early success of UA’s new flagship basketball product at FL we highlighted just a few days ago, it's now starting to sellout on Under Armour’s site as well. Given the media investment to support the launch, the question now shifts from one of allocation to overall supply levels. That’s exactly what Under Armour wants.
  • After years of waiting for Nordstrom to open in NYC, the store’s faithful were given a head-fake of sorts when it was rumored that it would be opening up its first location at 350 West Broadway in Soho. As it turns out, the location will be owned by Nordstrom, but not a branded full-line store. In addition, profits will be directed to non-profit organizations.



Coach Gets Aggressive on Chinese Retail - US fashion accessories brand Coach plans to open 25 stores in China during its current fiscal year ending June 2011 in an effort to step up its retail expansion in the world’s fastest growing luxury goods market. "China is our biggest opportunity as our brand takes hold and the market continues to develop rapidly," said Coach Chairman Lew Frankfort, adding that the company has started developing a multi-channel distribution model in the Chinese market, including a flagship store, retail outlets, and shop-in-shop. Coach, which owns 665 stores worldwide, currently operates 49 outlets in China. It has opened 15 stores in the Chinese market during the past fiscal year. A new has recently been opened in Dalian, Liaoning Province. <FashionNetAsia>

Hedgeye Retail’s Take: With sales in China just reaching ~$100mm last year accounting for less than 3% of total sales and Coach’s share at less than 5%, it’s a sizable opportunity indeed. The company is clearly going on offense in 2011 with 25 new stores representing ~60% square footage growth.


TSA Refinancing Debt - The Sports Authority Inc. is seeking a $350 million term loan to refinance debt, according to reports. Bank of America Corp. and JPMorgan Chase & Co. will arrange the seven-year debt. The Sports Authority plans to use the proceeds from the term loan to refinance an existing term loan and buy back a portion of its subordinated debt. The company took on that debt in 2006 to help pay for its approximately $1.36 billion leveraged buyout by Leonard Green. Separately, ratings agency Moody's Investors Service has raised its outlook on The Sports Authority Inc. to reflect the retailer's improved profitability, leading position in the market and strengthened liquidity. The firm said Friday it revised the company's outlook to "Stable" from "Negative," reaffirmed the company's "B3" corporate family and probability of default ratings and assigned a "B3" rating to the company's proposed $300 million senior unsecured term loan. Proceeds from the proposed term loan will be used to refinance the existing term loan and a portion of senior subordinated notes. <SportsOneSource>

Hedgeye Retail’s Take: The latest move from TSA suggests continued preparation for an eventual offering. Following Dick’s presentation last week at which the retailer mapped out the opportunity for store growth out west, perhaps TSA realized the need to accelerate plans of its own.


Maria Launching Lifestyle Line - After weeks of speculation, Carey confirmed on Thursday that she and her husband, Nick Cannon, are expecting their first child. But before her spring due date, Carey will hatch her first lifestyle collection featuring jewelry, footwear and fragrance on HSN on Nov. 29. The move makes Carey the newest addition to the celebrity designer circuit, but unlike many of her contemporaries, she isn’t taking the traditional retail route. Instead, she’s going straight to the consumer, and is sticking to a genre she is comfortable with — TV, as well as the Internet. <WWD>

Hedgeye Retail’s Take: She’s done fragrances, so why not jewelry? The noteworthy callout here is her decision to go direct only. Complete exposure to the fastest growing channel in retail is rare, but savvy move by Mimi. 


Innerwear Consolidation - The Komar Co. said Thursday it is acquiring the Carole Hochman Design Group, bolstering its position as the biggest privately owned innerwear firm in the U.S. Financial terms were not disclosed. The deal is expected to close within two weeks. Komar is a $500 million sleepwear, daywear and underwear firm with licensed brands such as Donna Karan, DKNY, Ellen Tracy, Eileen West, Liz Claiborne and Kensie, a young contemporary brand. It also produces the Very Vera Vera Wang sleepwear collection, which is a Kohl’s Corp. license. The family-owned Hochman company, marking its 80th year in business, generates between $150 million and $200 million annually. It produces and distributes sleepwear and intimates licensees, including Oscar de la Renta, Lauren Ralph Lauren, Betsey Johnson Intimates, Lilly Pulitzer and two new lines, Nicole Miller sleepwear and Tommy Bahama sleepwear, loungewear and boxers for men. <WWD>

Hedgeye Retail’s Take: Consolidation is to be expected in the declining hosiery market and with this stable of brands, Komar is upgrading the quality of its brands and ultimately its distribution channels to the end consumer in the process.


U.K. Retailer Jack Willis Comes to Beantown - The British men’s and women’s wear retailer — which has zoomed to almost 40 stores in the U.K. and yearly sales of 90 million pounds, or $143 million at current exchange, on the back of its cult status among 18- to 21-year-olds eager to snap up its English preppy styles — is making its boldest move yet in that former colony called the United States with the opening of a 4,600-square-foot store in a former town house at 179 Newbury Street in Boston. It’s the latest expansion move by a company that grew up in the Internet era and aggressively promotes e-commerce and social networking. “This has always been a multichannel business,” cofounder Peter Williams told WWD in an exclusive interview. “The Web has always been at the heart of this business, which is built around the lifestyle of our core customer.” About 25 percent of sales are online, while 75 percent are from the retail stores. <WWD>

Hedgeye Retail’s Take: Having 25% of sales from online is virtually unheard of for a brand of this size – perhaps neighboring competitors can learn a thing or two from their English competition.


Small Business Sees Outsized Benefits from Social Media - According to the American Express OPEN fall 2010 “Small Business Monitor,” small-business owners have dramatically upped their usage of social media for marketing in the past year. While just one in 10 business owners reported using social networking for marketing last year, 39% indicated they did in September 2010. The impetus is driving sales by connecting with consumers. Facebook was the clear leader among small-business owners, with 27% using the site to attract new customers, vs. 9% using LinkedIn, 8% using Twitter and 5% maintaining a blog. American Express found that among businesses that use social media marketing, 39% said it increased the exposure of their business. But the second most common response, selected by 17%, was that social media tools had not helped them. <emarketer>

Hedgeye Retail’s Take: The current day version of putting rubber to the road and handing out fliers to drive business, it’s no surprise to see small business owners learning how to navigate the social media network at breakneck speed.


R3: DECK, UA, COH, TSA - R3 10 29 10


Mexican Counterfeits on the Decline - Mexico’s textile industry is confident a ballooning contraband trade can fall sharply in three years as the government strengthens customs inspections and increases raids against so-called “phantom firms” that smuggle billions of fake and subvalued Asian garments into the country. On the back of fresh strategies to combat the activity, the trade could fall to accounting for three out of 10 garments sold in Mexico, down from six out of 10 now, Garcia predicted. One of those strategies shifted into higher gear earlier this month when Mexico unveiled plans to join the international Anti-Counterfeiting Trade Agreement, which 37 countries are hoping to enforce this year. Gilda Gonzalez, deputy director general at the Mexican Institute of Intellectual Property (PGR), told WWD that Mexico hopes to join the agreement in the first quarter of 2011, pending negotiations and the Mexican Senate’s approval. If Mexico joins the accord, fake clothing imports should fall drastically, Gonzalez predicted, as customs will be empowered to seize “suspect” containers at port or after they have entered the country. Under current legislation, brand owners must go to customs to report an illicit container or file a claim for the authorities to chase an illegal importer once the goods have reached Mexico. Mexico’s domestic textile and apparel sales (as measured by production value) totaled $5.8 billion last year but about 60 percent of the goods were contraband merchandise, arriving mostly from China but increasingly from Bangladesh, Vietnam and Malaysia, according to Canaintex. Of that 60 percent, 67 percent is apparel while the rest are textile products such as fabrics and yarns. The bulk of the goods come in illegally but can also — in the case of counterfeit brands — be made in Mexico. <WWD>

Hedgeye Retail’s Take: This legislation is a must in the eyes of apparel brands who are faced with expensing their own counter contraband efforts with no guarantee of results making it a futile effort for most, but impossible for small-to-mid sized brands. The proposed legislation rightfully empowers customs officials to proactively patrol the border for counterfeits, an effort we expect Mexico join.


Leading Chinese Footwear City Sees Increase in Exports - China’s leading shoe exporting city Wenzhou shipped 394 million pairs of shoes worth US$1.9 billion in the first seven months of this year, up 33.2% year-on-year, according to the city's customs. The EU and Eastern Europe remain the biggest overseas market although exports to the US have seen rapid growth. In the first seven months of this year, Wenzhou exported 131 million pairs of shoes to the EU, up 20.5% year-on-year, accounting for 33.2% of Wenzhou's total export of shoes during the period. That compared to exports of 42 million pairs of shoes to the US, up 85.3%, 22 million pairs to Russia, up 41.7%, and 30 million pairs to Croatia, up 96.2%. Jin Jianfeng, Deputy Chief of the Light Industry and Textiles Section at the Wenzhou Entry-Exit Inspection and Quarantine Bureau, said Wenzhou's competitive edge lies in its ability to deploy an accurate and timely grasp of information on the consumer market through direct contact with end-users. It's also developed a well-co-ordinated industry chain and a regional advantage through its product mix, he said. But real leather shoes, which are relatively expensive, are getting a cold response from foreign buyers, despite some recovery in demand there, said Jin. The share of high-end shoes in the total value of Wenzhou's total shoes export has steadily dropped to 17%, a drop of 1.7 percentage points from the same period last year. <FashtionNetAsia>

Hedgeye Retail’s Take: Despite continued growth of footwear exports from coastal Chinese cities, U.S. domestic brands continue to shift stitching operations in-land due to increasing labor costs as well as to neighboring countries such as Vietnam and Indonesia.


Vietnam Continues to See Manufacturing Demand - Vietnam’s textile and garment sector’s export value is expected to earn US$9.16 billion during the first ten months as the industry is likely to surpass its target benchmark of $10.5billion for the year, according to the Vietnam Textile and Apparel Association. The sector’s good performance is attributed to a rise in orders from Vietnam’s traditional giant importers including the US, the EU bloc, Japan and Russia. According to the Association, Vietnam’s textile and garment shipments to the US made up 55% of the industry’s export value in October. <FashtionNetAsia>

Hedgeye Retail’s Take: This is fat-tailed trend with years of runway.


Top Holiday Toys - "This year, the toy industry has combined innovation and creativity to respond to the ever-changing demands of children," says Gary Grant, chairman of the TRA's Dream Toys selection panel. "The technological advancements used in many of the toys we reviewed this year were simply amazing, and demonstrate how forward thinking manufacturers are." <LicenseMag.com>

Hedgeye Retail’s Take: With retailers forcing us to consider holiday shopping for our kids with holiday music playing before we even get to celebrate Halloween, here’s a list of toys to consider from across the pond.


R3: DECK, UA, COH, TSA - R3 2 10 29 10


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:




  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.


  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,



Keith R. McCullough
Chief Executive Officer

Early Look

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