Bubbles Pop

Takeaway: If my SPY TREND line wasn't broken, I'd buy the damn-bubble. But it is. And bubbles pop.

Deep breaths, people.


Today’s ISM report was a total train wreck … on both growth and inflation. It was the biggest one-month drop in new orders since 1980. I review that and much more in the 5 minute video below.



With #InflationAccelerating on the margin, US #GrowthSlowing mattered.


Now we have a bearish Hedgeye TREND setup in SPY. The bullish breakout in volatility is killing levered long momentum monkeys. That's why we fell so fast; monkeys on Old Wall 2.0 die real fast. Bullish monkeys taking "green arrows" to the head.


It was ugly out there today.


The Russell 2000 was smacked in the face for a -3.1% loss leading today's decline – nasty.


Got Consumer Discretionary (XLY)? It was down another -2.6% to -8.6% YTD! Eek.


If my SPY TREND line wasn't broken, I'd buy the damn-bubble. But it is.


And bubbles pop.


Bubbles Pop - bubb2


Right now there’s simply no long-term TAIL support on the S&P 500 to 1683.


The writing was on the wall. Financials (XLF) -2.5% snapping our @Hedgeye TREND (in our Risk Manager product) last week was a huge signal.


Bearish TRENDs are to be traded as aggressively as bullish ones.


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