Cartoon of the Day: What's In A Name?



Cartoon of the Day: What's In A Name? - Gold Bond cartoon 07.10.2014


In this case, it’s  two long ideas for investors. 


Russell 2000: Levels Refreshed

Position: 11 Longs, 6 Shorts


Back on 7/1, with the index overbought and the setup for pro-growth exposure at the beginning of July beginning to look a lot like it did back in March, we issued a fresh Sell Signal at 1208 on the Russell. (Selling: Russell Levels, Refreshed)     


After a big drop Monday, the Russell tested its Intermediate-Term TREND line for two sessions before breaking through on the open.  


Looking across both sectors and asset classes, prices are telling a cohesive, slow-growth story:  


  • Bonds bid; yield-spread compression
  • Gold +1% (+1.7% on the week)
  • Consumer Discretionary (-0.6%)
  • Utilities (+0.8%)


REITs and Gold Miners outperforming vs. consumption driven sectors (consumer retail getting crushed) as our cyclical bearish call on U.S. consumption growth continues to unfold in sector divergences.


Tomorrow in our Q3 Macro Themes call (ping for access) we’ll outline our bearish thesis on the U.S. consumer into in the back half of the year. We continue to like Gold, Treasuries, and defensive sectors (XLU, REITs, XLE) in the face of further #Dollar Devaluation crushing already thin consumer margins. #Q3Slowing will be our first theme in the deck on tomorrow’s call.


Our core risk management levels on the RTY, with their respective durations, are as follows: 

  1. Intermediate-Term TREND Resistance = 1173
  2. Immediate-Term TRADE Oversold = 1154  

In other words, after an expedited -4% slide from the 1208 overbought signal, we got most of the correction we we’re looking for.  From here, we’ll remain better sellers of consumer centric, small-cap growth style factors on strength. 


Russell 2000: Levels Refreshed - Russell Levels 07.10.14

VIDEO: McCullough Explains His Caution to Fox Business' Maria Bartiromo

Hedgeye Risk Management CEO Keith McCullough sat down with Fox Business’ Maria Bartiromo for the hour on “Opening Bell” this morning and explained why he’s cautious on the markets, his concerns about stagflation, and why he continues to like gold.

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Join Our Expert E-Cig "Speaker Series" - Are Vaporizers Stealing Share from Big Tobacco?

We look forward to continuing our Speaker Series on e-cigarettes and e-vapor with John J. Wiesehan, Jr., CEO of the Charlotte based company, Ballantyne Brands, LLC. The conference call will be held on Wednesday, July 16th at 11:00am EDT.


Ballantyne Brands is a leading private manufacturer with the third largest market share in the U.S. (xAOC channel) with such e-cig brands as Mistic and Neo and personal vaporizer Haus.




Is the consumer switching to an alternative vaping product, and why?  Mr. Wiesehan, Jr. will offer his latest insights and expertise to Hedgeye's ongoing research on the e-cigarette/e-vapor category.




  • Industry developments and trends
  • How the FDA's proposed regulations stands to impact the industry
  • Ballantyne Brands product offering versus Big Tobacco's
  • What does future technology look like







John J. Wiesehan, Jr. is currently the CEO of Ballantyne Brands, LLC. A graduate of Lindenwood University in Saint Charles, Missouri, John spent time at General Electric as the Worldwide Operations Manager. From General Electric, he moved to Woods Industries as Vice President in the Sales and Marketing sector.  In October 2012, John joined Ballantyne Brands, LLC located in North Carolina and became CEO.




  • Toll Free Number:
  • Direct Dial Number:
  • Conference Code: 544867#
  • Materials: CLICK HERE (Slides will download one hour prior to the start of the call)


For more information please email

Retail Callouts (7/10): FDO, Adi, NKE, JCP

Takeaway: FDO - little faith in core consumer. Adi releases 2nd fitness tracker...doubt we see a 3rd. Tough week for NKE soccer. RonJon speaks.



Friday (7/11)

  • PSMT - Earnings Call: 12:00pm




FDO - 3Q14 Earnings


Retail Callouts (7/10): FDO, Adi, NKE, JCP - chart2 7 10


Takeaway: Slight beat on the top line driven by a better than expected comp offset by  margin pressure due to sales mix (consumables penetration up 73bps), fixed cost deleverage, and increased ad spend led to the $0.04 EPS miss. We still have very little faith in FDO's core consumer.


AdiBok - Adidas Gets Smart



"Adidas unveiled Fit Smart, a fitness-training product worn on the wrist, at the Wearable Technologies Conference in San Francisco today...Fit Smart measures heart rate, calories, pace, distance and stride to calculate workout intensity."

"Fit Smart, which retails for $199, will be released in late August exclusively at Best Buy and, and then on"


Retail Callouts (7/10): FDO, Adi, NKE, JCP - chart1 7 10


Takeaway: Interesting move here by Adi given the moves made by its competition over the past 3-6 months. NKE appears to be walking away from fitness tracking hardware - choosing instead to outsource the design to Apple. UA won't be releasing another iteration of its Armour39 fitness tracker, deciding to partner with best-in-class products already on the market. This is the 2nd stab Adi has taken at the smartwatch/ fitness tracker, and our guess is that we won't see a 3rd. Sports brands have tried and failed repeatedly to establish a market presence in this growing category. Best to leave hardware to the Apples, FitBits and Jawbones of the world. 


AdiBok, NKE - Argentina Win Hands Adidas World Cup Win Before Final



"Argentina, sponsored by Adidas AG, triumphed on penalty kicks in Sao Paulo to eliminate a Dutch side outfitted by Nike Inc. of the U.S. In the final, it will face fellow Adidas-backed team Germany, which defeated Nike-supported Brazil 7-1 on July 8. The Herzogenaurach, Germany-based company also outfitted the Spanish team that won the last World Cup in 2010."


Takeaway: Tough week for NKE soccer. First the Brazil disaster, then ManU, and now an all Adi final.




JCP - Ron Johnson: ‘I was a terrible fit for J.C. Penney’



  • "Ron Johnson, who has been keeping a relatively low profile since he was ousted from J.C. Penney in April 2013, took to the podium in May, as a guest lecturer at Stanford University."
  • "’It was disappointing because I really believed we would make it work, but it was a relief because the lesson I learned is I was a terrible fit for J.C. Penney,’ he said. ‘I'm a creative person, here's a company that isn't uber-creative. I believe in change, this company’s much more comfortable, like many people are, with the status quo.’"


Full Video:


ZQK - Quiksilver Announces Additional Licensing Agreements



  • "Quiksilver, Inc. (NYSE: ZQK) today announced that it has entered into licensing agreements for several product categories, including Roxy young girls and children’s apparel, watches and socks/legwear, as well as other product categories including luggage, beach towels and surfboards."


DSW - New DSW Designer Shoe Warehouse Stores Open in Canada



  • "Town Shoes Limited is excited to announce the opening of its first two DSW Designer Shoe Warehouse locations in Canada. DSW Designer Shoe Warehouse will open at Heartland Centre in Mississauga and Woodland Hills in Newmarket, Ontario, on August 7."


AAP - American Apparel Signs Support Agreement with Standard General



  • "American Apparel, Inc. announced it has reached a Nomination, Standstill and Support Agreement with Standard General L.P. and company founder Dov Charney, the beneficial owners of nearly 44% of the Company's outstanding stock. Under the agreement, Standard General will provide up to $25 million in immediate financial support to the Company, the Company's board will be reconstituted..."


LE - Lands’ End deploys Fit Predictor to help online shoppers get best fit



  • "Lands’ End has deployed Secret Sauce’s Fit Predictor service, which proactively finds a customer's best fit in seconds using existing data, without the need for physical measurements."
  • "For new customers without a shopping history, the service can predict the best fit based on the customer's sizing with other brands."


BEBE - Apparel retailer Bebe stores revamps management board



  • "bebe stores, inc. announced that Seth Johnson, Blair Lambert and Brett Brewer have replaced Caden Wang, Barbara Bass and Cynthia Cohen on the Company’s Board of Directors, effective immediately."

Daily Trading Ranges

20 Proprietary Risk Ranges

Daily Trading Ranges is designed to help you understand where you’re buying and selling within the risk range and help you make better sales at the top end of the range and purchases at the low end.