Hedgeye CEO Keith McCullough adding Exact Sciences (EXAS) to the short side of Investing Ideas. Below is a brief note.
Well that was a nice intraday squeeze in US Equities, eh?
Getting net LONGER on the market open was the right portfolio positioning play. Now we can go hunting for some @Hedgeye Bear TREND setups that are bigly green here on the day.
Up first is a name that is in what we call #MicroQuad4 (or MQ4 as Tobin's team explains in his Healthcare Pro research product): Exact Sciences (EXAS).
Here's how we write and talk about weaponizing your Macro Quads with Micro Quad setups (yes we think this is the way of the Quantamental Research future):
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All that said, consensus estimate trends continue to reflect near-term weakness for our universe and the potential for a late 1Q22 bottom, which looks like it's in sync with the Macro Team's call (whether it's MacroQuad 1 or 4). This week, NEO rotated out of MicroQuad 4 and into 1, which is still a short position but lower exposure (the outlook looks better from a NTM revenue perspective, but we've got to find out what's happened in 2H21 that drove that weak guide). Also, EXAS slipped back into MQ4 from MQ1, which we've been expecting. Last, we've got some work to do on the estimate trends for XHS, XHE, and ARKG, so keep an eye out for that! |
Sellem on bright green,
KM