• It's Coming...

    MARKET EDGES

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

Mexican stocks have been surprisingly resilient in the past few months. However, yesterday, with the market -1.4%, we saw a negative divergence in Mexican trading and alarms went off in my macro models. I like shorting things when they are up, so I am waiting for an up day now, but the EWW (Mexico iShares etf) will be shorted using a 59.44 stop loss limit on the high side.

While Mexican export exposure to the US economy has come down from its 2001 peak of almost 90%, anything over 80% remains a massively relevant risk exposure to a country's GDP.

As slows in Q3, Mexico will.

KM