Growth Slowing: SP500 Levels, Refreshed

POSITIONS: Long Utilities (XLU), Short Consumer Discretionary (XLY)

 

Soros would say markets are “reflexive.” I agree. Growth Slowing As Inflation Accelerates can be ignored as a fundamental fact only until it is reported as fact. Then, if the market reacts negatively to that fact – I guess it’s a more relevant fact!

 

Last week’s call was to down-shift your beta. Hopefully you did some of that. Small Cap and Basics Materials beta is getting smoked now that the US Dollar is attempting to solidify its stance above $79.03 TREND support.

 

Across all of my risk management durations, here are the lines that currently matter most: 

  1. Immediate-term TRADE resistance (was support) = 1366
  2. Immediate-term TRADE support = 1356
  3. Intermediate-term TREND support = 1283 

In other words, there is plenty of bullish support for this market – just from lower prices. We have not seen my immediate-term TRADE line (1366 today) snap and stay there (below the line) since December. So, stay tuned…

 

Our markets are addicted to inflation. So this, like mostly everything in markets, is going to be a process, not a point.

 

KM

 

Keith R. McCullough
Chief Executive Officer

 

Growth Slowing: SP500 Levels, Refreshed - SPX



Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

read more

People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

read more

UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

read more

Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

read more

Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

read more

An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

read more

Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

read more

REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

read more

Capital Brief: 5 Things to Watch Right Now In Washington

Here's a quick look at some key issues investors should keep an eye on from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.

read more

Premium insight

[UNLOCKED] Today's Daily Trading Ranges

“If I could only have one thing of the many things we have it would be my daily ranges." Hedgeye CEO Keith McCullough said recently.

read more

We'll Say It Again: Leave Your Politics Out of Your Portfolio

If your politics dictates your portfolio positioning, the Democrats and #NeverTrump crowd out there have had a hell of a week.

read more