Client Talking Points
They unhalted 250 names overnight (793 are still halted) and the Shanghai Composite Casino couldn’t hold it’s 3-day gains. The Sganhai Composite closed -1.2% and remains in crash mode (down -24% month-over-month) < @Hedgeye TREND resistance of 4,275.
If only they didn’t have to report the JUN and JUL data! Eurozone ZEW (economic sentiment) slows to 42.7 JUL vs 53.7 JUN as JUN CPI/PPIs across the board stops “recovering” – German CPI 0.3% JUN, Spain’s 0.1, Sweden slows to -0.4 vs +0.1 last.
Commodity (and Junk Debt) #Deflation = on as long as this Down Euro begging remains and Janet Yellen doesn’t get as dovish as the data is getting; WTI -1.9% with no immediate-term support to $49.08. Natutal Gas looks like a great short here too.
**The Macro Show - CLICK HERE to watch today's edition at 8:30AM ET with a full lineup including CEO Keith McCullough, Healthcare Sector Head Tom Tobin, Financials Sector Head Josh Steiner and Macro Analyst Darius Dale.
|FIXED INCOME||29%||INTL CURRENCIES||9%|
Top Long Ideas
General Mills remains on the Hedgeye Consumer Staples Best Ideas list as a LONG. GIS has a lot of things going for it and they are going to show it in the top and bottom line this year. Over the last couple of months, the company has announced the removal of artificial colors and flavors from their cereals. More recently, they have committed to using only cage-free eggs. Many of these small actions that management is taking are going to have a snowball effect as they go throughout FY16. Below is a list of some of the biggest things that we are looking forward to this year:
Gaming, Lodging and Leisure Sector Head Todd Jordan reiterates his team's bullish high-conviction thesis on Penn National Gaming. The company remains one of our favorite names on the long side and boasts the best new unit growth story in domestic gaming. Jordan further notes that with more states releasing their June gaming revenues this past week, we feel more confident in our higher than consensus Revenue, EBITDA, and EPS estimates.
Long-term Treasury rates remain the best proxy for forward-looking growth expectations. We outline three components of secular stagnation below to explain the SAVINGS/INVESTMENT GLUT that is at the heart of the academic argument for current policy measures:
Three for the Road
TWEET OF THE DAY
VIDEO: This Could Crash The Market https://app.hedgeye.com/insights/45178-mccullough-this-could-crash-the-market… via @hedgeye
QUOTE OF THE DAY
Commitment is the enemy of resistance, for it is the serious promise to press on, to get up, no matter how many times you are knocked down.
STAT OF THE DAY
Nationally, Canadian Home Prices have risen around 160% since the turn of the millennium.