One thing that has USD up is Yen down. Of course, Yen down equals Weimar Nikkei up (even though in the end it's likely going to blow them up). That’s the central planning plan and they’re sticking to it! Nikkei surged +4.9% overnight, recapturing 13,081 TRADE support as the Yen fails at 96.05 TREND resistance (vs USD).
Copper was smoked yet again on the potent cocktail of #StrongDollar and bad China data this morning. Chinese Export data got royally crushed to just +1% in May vs +14.7% April (They made up the number in April). Copper remains in a Bearish Formation with immediate-term TRADE resistance = 3.38/lb.
The 10yr is holding last week’s gains at 2.16% this morning; still looks great to us (Treasury Bonds look bad – Financials look great, XLF). Meanwhile, there’s really no US economic data that matters until Thursday when Retail Sales will show that they grew again sequentially in May. US #GrowthAccelerating and no immediate-term resistance in the 10yr to 2.22%, then 2.41% on the TREND duration
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Decent earnings visibility, stabilized market share, and aggressive share repurchases should keep a floor on the stock. Near-term earnings, potentially big orders from Oregon and South Dakota, and news of proliferating gaming domestically could provide near term catalysts for a stock that trades at only 11x EPS. We believe that multiple is unsustainably low – and management likely agrees given the buyback – for a company with the balance sheet and strong cash flow as IGT. Given private equity’s interest in WMS (they lost out to SGMS) – a company similar to IGT that unlike IGT generates little free cash – we wouldn’t rule out a privatizing transaction to realize the inherent value in this company.
WWW is one of the best managed and most consistent companies in retail. We’re rarely fans of acquisitions, but the recent addition of Sperry, Saucony, Keds and Stride Rite (known as PLG) gives WWW a multi-year platform from which to grow.
With FedEx Express margins at a 30+ year low and 4-7 percentage points behind competitors, the opportunity for effective cost reductions appears significant. FedEx Ground is using its structural advantages to take market share from UPS. FDX competes in a highly consolidated industry with rational pricing. Both the Ground and Express divisions could be separately worth more than FDX’s current market value, in our view.
If Jimmy Paulsen is out, does that make us the only hyper US stock market bulls left?
"If they hate, then let 'em hate and watch the money pile up"
- 50 Cent
20% of all divorce cases in the United States cite evidence found on Facebook as grounds for the disillusion of marriage.
THE MACAU METRO MONITOR, JUNE 10, 2013
MACAU LEGEND'S IPO AIMS TO RAISE UP TO US$786 MILLION Macau Business
Macau Legend Development Ltd is looking to raise up to US$786 million (MOP6.3 billion) in its upcoming HK IPO. Previous reports said the company was looking to secure US$600 million from the operation. The company and shareholders Lam Fong Ngo and Grand Bright are selling 2.05 billion shares in the offering, of which 86.2% are new shares issued by Macau Legend, and the remainder existing stock from the two shareholders.
Macau Legend is offering the shares in an indicative range of HK$2.30 (US$0.3) to HK$2.98 each. The listing is scheduled for June 27. The proceeds will go to financing the redevelopment of the Macau Fisherman’s Wharf theme park.
This indispensable trading tool is based on a risk management signaling process Hedgeye CEO Keith McCullough developed during his years as a hedge fund manager and continues to refine. Nearly every trading day, you’ll receive Keith’s latest signals - buy, sell, short or cover.
TODAY’S S&P 500 SET-UP – June 10, 2013
As we look at today's setup for the S&P 500, the range is 45 points or 1.18% downside to 1624 and 1.56% upside to 1669.
CREDIT/ECONOMIC MARKET LOOK:
MACRO DATA POINTS (Bloomberg Estimates):
WHAT TO WATCH
COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)
The Hedgeye Macro Team
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.