In this excerpt from today's edition of RTA Live, Hedgeye CEO Keith McCullough responds to Jim Rickards’ commentary on illiquidity in U.S. Treasuries and reminds subscribers that there are liquidity issues in stocks, too.
Subscribe to Real-Time Alerts to see full episodes of RTA Live and receive Hedgeye's proprietary Buy and Sell signals in your inbox every day.
In this brief excerpt from The Macro Show, Hedgeye CEO Keith McCullough discusses what he heard during three days of meetings with top institutional investors in Chicago, New York, and Boston.
the macro show
what smart investors watch to win
Hosted by Hedgeye CEO Keith McCullough at 9:00am ET, this special online broadcast offers smart investors and traders of all stripes the sharpest insights and clearest market analysis available on Wall Street.
Takeaway: VIP distress
CALL TO ACTION
Overall, the gaming environment in Singapore remains challenging, particularly in the VIP segment. While MBS held up due in part to high hold, Q1 2015 was another bad quarter for Genting Singapore. Its RWS property lost market share in every gaming category. With no obvious catalysts for growth, Genting Singapore shareholders can only hope for value enhancing corporate activity. Periodic share repurchases are not enough.
Please see our detailed note:
Takeaway: The overall labor market remains supportive while job losses in the energy sector continue to grow.
Below is the breakdown of this morning's initial claims data from Joshua Steiner and the Hedgeye Financials team. If you would like to setup a call with Josh or Jonathan or trial their research, please contact
JOB SEPARATIONS: AGGREGATE vs ENERGY
Claims improved once again last week, falling to a seasonally adjusted 264k, continuing an impressive push below the frictional floor of 300k.
In the first chart below, we show that the spread between our indexed basket of energy state claims and the U.S. as a whole has tightened for the last few weeks, moving from 31.8 on April 11 to 24.8 on May 2.
However, the second chart below shows that the labor market in the energy sector worsened again in April. Job cut announcements in the energy sector had been running at 16-20k/month in January and February, but then appeared to show some glimmer of improvement when they fell to 1k in March. That didn't last long, as the latest data shows 20k more energy workers let go in April.
Initial jobless claims fell 1k to 264k from 265k WoW, as the prior week's number was unrevised. Meanwhile, the 4-week rolling average of seasonally-adjusted claims fell by -8k WoW to 272k.
The 4-week rolling average of NSA claims, another way of evaluating the data, was -14.2% lower YoY, which is a sequential improvement versus the previous week's YoY change of -12.2%
Joshua Steiner, CFA
Jonathan Casteleyn, CFA, CMT
real edge in real-time
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.