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    MARKET EDGES

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

I know, I know, this guy McCullough and his colleagues at Research Edge are very cocky.  They talk about being right, but they aren't running real money.  We've heard it all and, in fact, some of the criticisms are fair, but the fact of the matter is we endeavor to generate money making ideas for our clients and we have done that.  Since inception we have been right 87.4% of the time on our short calls and 83.2%  on our long calls.

Some of those ideas were short term and some of those ideas were in illiquid names, but, by golly, that is out of 472 positions!  Our whole business model is to try and deliver high probability ideas to our clients and the facts suggest we have delivered, despite our many faults. And we do have many faults.  In fact, I'll call our CEO out on one his faults, when he gets in at 515am every morning, he's grumpy.  That's a fault.

Earlier this week, we introduced a new scorecard to measure ourselves and it was versus Dennis Gartman, aka Garty.  We think he is a good guy who finds interesting nuggets, but we are just not convinced he can beat us consistently.   

On May 17th in our Early Look note entitled ""Short Of" Garty?", we wrote:

"This does not mean, however, that I need to subscribe to the panting dog nodding that CNBC's Fast Money's producer must force his Traders" to look into the eye of the camera with when listening to the Gartman gospel. Someone has to hold the members of this circus act accountable. The American Financial system is being You Tubed by the world, daily, and it's just too embarrassing to know that The Client (China) thinks that this is what US investors do.

So Garty, let's slap the ole red, white and blue accountability pants on and take a walk down the path of a few positions that you are currently "short of", The Dow and Gold:

1. I have also been "bearish of" the Dow via the DIA etf, but covered my position on Wednesday's weakness

2. I am long Gold via the GLD etf, and remain "bullish of" it

Garty, like you, I'm in it to win it here and I want to see you keep winning man. If the Dow is down, at a bare minimum, just cover your short. As for being "short of" gold, well, I know that you know that I'm right on this, so... cheers to changing as the facts do."

In the last few days, Garty capitulated on both Gold and U.S. equities and while we salute him for being flexible as the facts have gone against him, the score remains: Research Edge 2, Gartman 0.

The puck drops again tomorrow at 930am.  Keep your head up Garty Fans. . .

Daryl G. Jones
Managing Director

Research Edge 2, Gartman 0 - hansonbros