[COMPLIMENTARY] Top 3 Things | Crashes/#Oversolds/#Overboughts

FROM THE DESK

If you were properly positioned (Long Gold, Short QQQ, for example), don’t get piggy here…

1. #Crashes – both the NASDAQ and Russell 2000 (IWM) did precisely what we thought they’d do with the Fed tightening into Deep #Quad4 in Q2 – they crashed > 20% from their #Quad2 Cycle Peak, on the same day (yesterday), on big time #accelerating/capitulation volume and #overbought Equity Volatility (total US Equity Volume +27% vs. 1mth avg yest)
2. #Oversolds – inasmuch as we registered #overbought signals in US Equities last Tuesday, we get #oversold ones a week later – the key to risk managing bear markets is knowing WHEN to FADE the crowd (and you have to do that both ways); Asian & European Equities also signaled #oversold alongside Bond Yields in the last 24 hours so I’m looking for bounces in both (stocks and yields)
3. #Overboughts – our Long USD, Gold, and Equity Volatility positions are every bit signaling immediate-term TRADE #overbought within their Bullish @Hedgeye TRENDs as Bearish TREND Shorts are signaling #oversold! So what I was doing yesterday was going from net SHORT US Equity to Neutral, Selling-SOME Gold, Gold Miners, Energy, and buying some EM Longs (THD and EZA)

OUR LEVELS

Immediate-term @Hedgeye Risk Ranges: SP500 = 4178-4391; UST 10yr Yield = 1.68-1.89%

KM