THE HEDGEYE BREAKFAST MONITOR
HEDGEYE VIRTUAL PORTFOLIO POSITIONS
LONGS: JACK, SBUX
SHORTS: MCD
MACRO NOTES
Commentary from CEO Keith McCullough
If only the global economy was Apple…
- SPAIN – do up your chinstraps because Spain is officially moving back into crash mode (down -19.4% from its YTD high in Feb where a lot in Global Macro stopped going up – gravity + #GrowthSlowing = nasty combo). Remember, the Germans are on the record saying Spain and Italy are potentially “Too Big To Save”… potentially…
- COPPER – the Doctor is out. No bounce this morning in either Gold or Copper as Bernanke’s Bubbles continue to pop. Neither of these Commodities look like Nat Gas yet (crashing to $1.94 this morn), but both are in what we call Bearish Formations (bearish across all 3 risk mgt durations – TRADE/ TREND/TAIL).
- US DOLLAR – hanging in here at its long-term TAIL of support ($76.13) like a champ. Despite all of the fiscal and monetary planning disasters in the US, that’s impressive – and that’s mainly because trading USD in the middle of a Global Currency War is relative (France could vote for a Socialist and Japan is on the fiscal brink).
SP500 no-volume rally yesterday didn’t close above my immediate-term TRADE line of 1394 resistance, despite APPL. KM
SUBSECTOR PERFORMANCE
QUICK SERVICE
MCD: McDonald’s was raised to “Buy” from “Hold” at Edward Jones.
PNRA: Panera Chief Operating Officer John Maguire will step down effective May 31st to become CEO of Friendly’s Ice Cream LLC. Charles Chapman III, currently serving as executive vice president of development and business development and licensing, will take over as Panera’s COO at the end of May.
NOTABLE PERFORMANCE ON ACCELERATING VOLUME:
SBUX: Starbucks has declined for two consecutive days, closing down 1.7% yesterday on accelerating volume.
YUM: Yum traded higher on accelerating volume ahead of earnings.
CASUAL DINING
NOTABLE PERFORMANCE ON ACCELERATING VOLUME:
BWLD: Buffalo Wild Wings declined on accelerating volume yesterday. This stock remains one of our favorite names on the short side.
Howard Penney
Managing Director
Rory Green
Analyst
