According to Hedgeye CEO Keith McCullough:
Follow the bouncing macro puck...
1. Europeans freak and devalue
2. USD starts to strengthen again vs Euros and Yens
3. Commodity #Deflation remains the TREND
I've been waiting, patiently, to start re-shorting some of these commodity plays and as our Industrials analyst Jay Van Sciver wrote recently "the only thing worse than forecasting a stock is forecasting a stock based on a commodity that is dependent on the weather."
Per Jay, excessive rain in parts of the U.S. Midwest, along with some drought conditions in Europe, pushed prices for Corn, Soy, and Wheat higher this past week. But my risk management signal wouldn't call that a bullish TREND (it was a counter-TREND trade).
Shorting DE high,
KM
