• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

I wrote about this in my “Early Look” note this morning, and wanted to hammer on the same point with a picture rather than prose.

Someone needs to send this to Obama’s crackberry with a note attached that says ‘look at what the US stock market did in December when the US$ broke this white dotted line.’ That’s it Mr. President – you don’t need a room full of “economists” to make the call. I don’t think it’s any more complicated than that. Break the buck’s $83.96 line, and assets will start to “re-flate” again.

Note that there is a monumental difference between re-flation and inflation. “Re-flation” builds confidence. Confidence perpetuates momentum. Positive momentum is what the US stock market has lost – that positive momentum line in the SP500 is now 873.

If Geithner can break the dotted white line below, the apocalypse cometh bears trekking the grounds in Davos, Switzerland are going to have to deal with me getting bullish like I was in December. If the US$ holds above this line, commodities and US equity markets are going to continue to be clawed on every rally, as they should.
KM