[COMPLIMENTARY] Top 3 Things | Rates / QQQ / Sectors

11/02/22 07:28AM 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. 

Both the FX and Bond Market have been pricing in #NoPivot as perma bull stock market narratives beg for one…

  1. RATES – UST 2yr Yield is straight back up (+9bps day-over-day) to 4.52% and signaling higher-highs ahead of the much anticipated Fed meeting; whoever was betting on a Dovish Pivot via a steepener just got smoked for the umpteenth time in 2022 with 10s/2s inverting to -48bps – UST 10yr Yield is +11bps from where hopium had it 24hrs ago too
  2. NASDAQ – don’t tell anyone but US stocks were DOWN for the 4th day in 5 as the most widely owned #BubbleCaps in American history continued to crash to lower-lows (i.e. no “tactical bottom” in AMZN or GOOGL); NASDAQ’s #Quad4 Crash is currently -32.2% from its Cycle Peak and #NazVol is at 32 (during the prior 2 bear market bounces, it got down to 25)
  3. SECTORS – Long Energy (XLE) vs. Short Consumer Discretionary (XLY) continues to be one of our Core L/S Positions – XLY was down another -1.0% yesterday, crashing to -30.3% YTD (i.e. #NoPivot) and XLE was up another +1.0% to +63.7% YTD as WTI busted a move back above my immediate-term TRADE momentum level of $86.48/barrel

Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.90-4.32%

KM   

[COMPLIMENTARY] Top 3 Things | Rates / QQQ / Sectors - njj

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.