FROM THE DESK
And another bear market bounce (from the low-end of my Risk Ranges), it is in America this morning…
- JAPAN – it’s not a bear market in Japan, because Japan A) has been in #Quad2 and B) remains in #Quad2 this morning from both an economic data and #VASP Signal Strength perspective with the Nikkei up another +1.1% (vs. SPX -0.7% yesterday) – I added to my Core Long DXJ Asset Allocation on red yesterday
- OIL – The Setup gets more interesting now that WTI broke out above the immediate-term TRADE resistance level I cited last week (that’s now Bullish TRADE support at $94.12/barrel); intermediate-term TREND resistance remains overhead at $98.81 WTI but, as you can see in my Risk Ranges report, Energy Stocks (XLE) are back to signaling Bullish @Hedgeye TREND alongside Utes (XLU)
- VIX – after we got paid (again) on the short side of US Equity Sectors and Factor Exposures (GROWTH, HIGH SHORT INT, etc.) and the VIX goes from 19 to 26, The Setup changes with Vol of Vol saying 20.15-28.25 for my VIX Risk Range and implied volatility DISCOUNTS all moving back to PREMIUMS (even AAPL has a +13% PREMIUM this AM)
OUR LEVELS
Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 2.85-3.16%
KM