FROM THE DESK
Was yesterday the end of consensus hedge fund short-covering in US Equities? It happened on decelerating volume so my process says yes…
- USD – raising US Cash and re-shorting GROWTH (Equities) at lower-highs is a core Asset Allocation move as we head into the depths of #Quad4 in Q2. USD Index just signaled a BIG higher-low at 97.70 as the EUR/USD failed @Hedgeye TRADE resistance. Remember, Europe is heading into deep #Quad4 for the next 2 quarters; great spot to start shorting European Equities too
- GOLD – I am not consensus hedge fund. I’ve earned the opportunity to play on my front foot here this year and was adding to US Equity Shorts yesterday and buying more Gold, Gold Miners (GDX), and Silver (SLV). Why? A: #Quad4. Gold and Utilities (XLU) have held up just fine amidst the recent panic selling in Treasuries. I bought UST 10yr notes on sale yesterday, buying more at 2.41% again if I get it
- ShortQQQ – remember the time some dude wrote a note titled “Short QQQ Now”? Seems like 2 careers ago but that was on FEB 10th at a better price than you got yesterday (that was NASDAQ 14,490 and it crashed then bounced to lower-highs within my Bearish @Hedgeye TREND from there). All this consensus short covering did was open my #crash level to -12.3% from yesterday’s close at 12,375
OUR LEVELS
Immediate-term @Hedgeye Risk Ranges: SP500 = 4107-4535; UST 10yr Yield = 1.87-2.41%
KM
