Hope is not a risk mgt #process… but, secretly, I’m hoping for an up open to re-short the NASDAQ, Tech (XLK), etc. in RTA!
- QQQ – if we didn’t have Bear Basket Rallies like this, it wouldn’t be a bear market (GS Profitless Tech Basket was up another +4.6% yesterday!), but this NASDAQ rally pales in comparison to the many bear market rallies I survived (as a younger, single, bear) back in 2000-2002. Down -29.2% from its Mother of All Bubbles Peak and in The Chop Bucket QQQs remain with #NazVol’s Risk Range = 23.01-28.80
- CURVE – I’m old enough to remember the last few times (in the last year) the Perma Crypto, #BubbleCap, etc. Bulls didn’t think the Yield Curve Signal was a thing… but this morning it’s making a fresh YTD low at -73bps on 10s/2s after the short-end (2s) held @Hedgeye TREND support of 4.11% like a champ. Remember, the higher markets (like Oil) go to lower-highs, the more hawkish the Fed remains …
- GOLD – I don’t see any subscribers whining about this Top 3 Asset Allocation, #weird. Why would you chase Bitcoin with going on 50 Vol when you can buy every damn dip in Gold with 16 Vol? Oh, because most 200-day Moving Monkey chart chasers don’t have a Vol component to their “process”! Gold loves this Yield Curve inverting towards new lows
Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.36-3.69%
KM