[COMPLIMENTARY] Top 3 Things | Breakdowns/Curve/USD

Good #Quad4 morning from Cartagena, Colombia!

1. BREAKDOWNS – everything that we’re bearish on in this edition of Global #Quad4 (QQQ, IWM, XLY, Oil, XOP, etc.) failed near the TOP-end of my Risk Range™ Signals on Monday and things that we could be bullish on are now breaking down as well (Hang Seng -2.3% overnight broke TREND Signal Support, Copper teetering on doing the same = 2 big examples)
2. CURVE – I’ve been signaling a Yield Curve Inversion on 10s2s of greater than 100bps for about 6 months now so the Old Wall is going to “analyze” what that meant in 1981 now with the curve at a bone-chilling new Cycle Low of -107bps this morning. All the while the longest end of the curve (30yr Yield) continues to breakdown below the 10yr yield which is a nasty #GrowthSlowing Signal too
3. USD – what’s the inverse of #Quad4 BREAKDOWNS? A: USD BREAKOUT! Yes! I’ve always wanted to go all CAPS on you from Cartagena! lol. Send me a US postcard of all the Old Wall Chart Monkeys who were saying the “US Dollar Is Breaking Down” in JAN into early FEB. I love little monkeys. I have been feeding them here. They like little pieces of coconut! (USD is currently largest Asset Allocation)

Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.83-4.09%

KM