[COMPLIMENTARY] Top 3 Things | Europe / Gold / VIX

08/17/22 07:02AM EDT

Editor's Note: Below is a complimentary "Top 3 Things" note from Hedgeye CEO Keith McCullough. This note goes out to Macro Show subscribers every morning before the 9am show. (Institutional investors receive it between 6:30-7am. To get on Keith's institutional distribution list email .) Today's Early Look will be sent separately. 

FROM THE DESK

Long Japan (DXJ) vs. Short Europe (and EUR/USD) #reiterated with the Nikkei up another +1.2% overnight (signaling immediate-term TRADE #overbought)…

  1. EUROPE – you can’t quite see it in a uniquely American Meme Stock chart, but the European Macro data continues to collapse into what might be better characterized as #Quad4 Depression instead of recession – Poland (EPOL) leads losers at -2.1% this morning, DAX -0.8%, etc. (Top 3 European Shorts ranked in Core Signal Strength terms: EPOL, EWI, EWG)
  2. GOLD – nice buying opportunity in this Core #Quad4 Asset Allocation with bond yields bouncing (how about that “Fed Pivot”!). Unlike US Equity Vol, Gold Volatility (GVZ) is investable here with a Vol of Vol Risk Range of 14.08-17.27
  3. VIX – complete and utter Vol Suppression characterizes short-term depression for Meme Stock bears too! But once OPEX (Options Expiration is gone (Friday) there will be far less fun and games being played with Old Wall dealers and a bunch of Buy Side SPY Strikes that have a super short-term agenda – what did you do at VIX 19 in March?

OUR LEVELS

Immediate-term @Hedgeye Risk Ranges: SP500 = 4011-4319; UST 10yr Yield = 2.67-2.94%

KM  

Keith R. McCullough
Chief Executive Officer

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