[COMPLIMENTARY] Top 3 Things | Asia/Energy/Rates

US Equity Style FOMO, short-covering, and narrative shifts did not change economic gravity overnight …

1. ASIA – there are no Goldman Bear Baskets of Profitless Tech for hedge funds to panic about and cover on green in Asia – the Nikkei got nuked for a -2.2% loss overnight, breaking bad below @Hedgeye TREND support, Dr. KOSPI got crushed for another -2.6% decline, and EM Asia was a disaster with Thailand (THD) leading losers at -3.1% (we’re still #out of all these former Longs, including China)
2. ENERGY – who gets you #out? With the Canadian accent, eh! WTI is getting smoked (again) this morning -2.6% after failing @Hedgeye TREND resistance for the umpteenth time and our Energy Shorts (including the Country Shorts, UAE, QTA, KWT) continue to get the alpha job done on days that Tourists chase Tech. “Cheap” (on the wrong numbers) Energy (XLE) and Fins (XLF) in a dead heat at -7.5% YTD
3. RATES – if US Treasury Yields have a move (higher) like German and UK 10s are having this morning (both +10bps off TREND support), I recommend prayer for most markets. US Treasury Bond Volatility (MOVE Index) closed at a RECORD high of 173 yesterday AFTER Yellen and the Fed tried the bailout thing to suppress volatility! UST 10yr breakout level = 3.64%, so #PayAttention

Immediate-term @Hedgeye Risk Ranges: SP500 = 3; UST 10yr Yield = 3.52-4.12%

KM