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)…
- 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)
- 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
- 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
