The Conch Has Been Claimed

"Head-fake" ... "Swine"... Whine...

 

When it comes to making the call on US employment deltas, Les Depressionistas can't fight gravity. The chart below is what it is at this point and is, like all charts, a historical review of what's behind us. Market's don't trade on the past. They look forward. Now you know why we went straight up.

 

This week's jobless claims report provided the shock and awe required for that last brave soul standing to cover his shorts into the apex of the steepest short squeeze in modern history.

 

In the end, US employment improving should stabilize the US Dollar. This morning the economic data arrested the decline of the US Dollar and that, in turn, arrested the ascent of the stock market's squeeze.

 

Bernanke just walked America through what happens to interest rates as the economy finds her cyclical recovery - they go up. As they go up, this is one more factor that should allow us to start making some money on the short side again. With plenty of short covering out of the way, there are some fantastic entry points developing.

 

Our call has been to be long for the rollover in this chart. Now my call is to ring the register, take a deep breath, and wait to see where Mr. Market takes us next. All the while, remember that market prices don't lie; people do.

 

Keith R. McCullough
Chief Executive Officer

The Conch Has Been Claimed - employment1


Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more