FROM THE DESK
Is Up Oil and Down Treasuries what the next bull market looks like? Nope. Stay with #Quad4…
- OVERSOLD? – Nope. But AFTER SPY being down for 5 of the last 6 days, we’ll get another bear market bounce to big-time lower-highs with the lower-LOWS in my SPX Risk Range down at 3826 and 37-38 VIX very much in play. NASDAQ and Russell have #crashed -29% from their #Quad2 Cycle Peaks and by the time SPY is actually oversold it should be down that much too
- OIL – reflating to lower-highs +2% this morning after recapturing the flag (i.e. @Hedgeye TRADE breakout level of $105.45 WTI). This is the main event because this is quite literally (mathematically) the ONLY big thing in Macro that is Bullish from a TRADE and TREND perspective and that is NOT good for the Global Consumer in #GlobalQuad4!
- RATES – from bond yields signaling immediate-term TRADE #Overbought (Bonds #oversold) to bond yields (both local and Global) signaling immediate-term TRADE #oversold (Bonds #Overbought)? Yep. In 5 days. So you should have been SELLING-SOME Bonds on green yesterday so that you can buy-MORE back on red as both the UST and German 10yr Yields finally signal lower-highs like Oil is
OUR LEVELS
Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 2.80-3.13%
KM
Keith R. McCullough
Chief Executive Officer
