FROM THE DESK
As #BubbleCaps continue to implode, one by one, gotta chase/own TSLA at today’s lower-high!
- USD – one of the most obvious reasons (that won’t be in today’s Old Wall talking points) for the latest chase to lower QQQ highs is that the USD Index is correcting towards the low-end of its Risk Range – there’s an inverse SPY correlation of -0.85 to USD right now, don’t forget (so today you “raise cash” again, buy USD, and sell Growth, Small Cap, Crypto, again)
- #EarningSlowing – whatever you do, do NOT talk about the rules of #Quad4 Club (when the ROC of REVs and EPS #slow and #BubbleCaps get eviscerated). It’s still VERY early (and Q2 is going to me much worse), but 67 of the SP500s company’s have reported an aggregate Q1 EPS decline of -7.6% year-over-year – TSLA should #slow in Q2
- SECTORS – One major reason why my Top 2 US Index Shorts have been QQQ and IWM and not SPY is because SPY has a lot of Sector Styles that I am Long of including REITS (XRE), Healthcare (PINK), Utes (XLU), Defense (ITA), Miners (GDX), etc. vs. the 3 dogs yesterday (Comms, Tech, Discretionary) which were all down on the day pre today’s bear market bounces
OUR LEVELS
Immediate-term @Hedgeye Risk Ranges: SP500 = 4; UST 10yr Yield = 2.65-3.03%
KM
Keith R. McCullough
Chief Executive Officer
