[COMPLIMENTARY] Top 3 Things | USD/Oil/Rates

After 3 straight down days (SPY down for 6 of the last 7) we register some buy/cover signals…

1. USD – since so many people are so short-term on their USD questions, I’ve decided to help you panic less … and risk manage it on a shorter-term duration! Yesterday was a VERY short-term TRADE overbought #VASP Signal vs. EUR in particular; wouldn’t take much of a Macro Tourist day on PPI (Friday) to get the crowd to sell USD again – respecting the Correlations Trades…
2. OIL – if you didn’t know what happened to Oil Demand during my Crash Call in 2008, now you know what Global #Quad4 Recession (in Demand) looks like with WTI having crashed -40% from its Inflation Cycle Peak (it peaked in mid-08’ too); I’m obviously #out of Energy Equity exposures and added Utilities (XLU) to the Asset Allocation Model. XLU was +0.6% yesterday in a sea of #Quad4 Red
3. RATES – my UST 10yr Yield Risk Range is looking more and more like The Top for the Long-end of The Curve is in with the top-end of my Risk Range all the way down to 3.82% this morning and lower-lows on the low-end at 3.43% which is well below 3.58% TREND. No, I’m not panic buying TLT on that today. I’m already Long GLD, SLV, PPLT, XLU, XLP, XLV, etc. and will take my time because I can

Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.43-3.82%

KM