• Investing Insights & Exclusive Offers → Get Our FREE “Market Brief”
    Sign-up for our free weekly newsletter. Get unparalleled investing insights and exclusive Summer Sale discounts on Hedgeye research.

    Disclaimer: By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. Use of Hedgeye and any other products available through hedgeye.com are subject to our Terms Of Service and Privacy Policy

POSITION: No Position SPY

To be, or not to be bearish – remains the question.

Clearly, with Growth Slowing As Reported Inflation Remains Sticky, Global Equity markets are putting a lower-multiple on The Stagflation; particularly US style Jobless Stagflation – and this morning’s y/y rise in US Import Prices is simply just another reminder of that.

In the chart below we show lower-lows of immediate-term TRADE support (1257), and no long-term support  all the way down to 1219 (our long-term TAIL of support), which would be a -10.6% drawdown from the April YTD high (1363).

While some are hoping that the 200-day moving average saves this selloff from moving to 7 consecutive weeks, we’d remind Risk Managers that hope is not a risk management process.

I remain very optimistic about the future of America – particularly as this failure of Keynesian common sense gives way to changes in leadership and economic resolve.

KM

Keith R. McCullough
Chief Executive Officer

To Be Bearish: SP500 Levels, Refreshed - 1