We've been bearish on stocks since July and consistently bullish on the Long bond (TLT). In related news, we've been right.
Below are five key charts this morning with analysis from Hedgeye CEO Keith McCullough.
"With the CRB Index closing at 162 yesterday (Oil sub $30, Copper $1.94, Nickel -5.7% on the day!, etc) macro markets are bouncing on those crashes bouncing, not Chinese trade data (Shanghai was -2.4%)," Hedgeye CEO Keith McCullough wrote in a note to subscribers earlier this morning. "#Deflation/Recession reports pending on Friday with USA’s PPI and Industrial Production reports."
Does this look "transitory" to you?
Take a look at copper...
meanwhile, Over in Bond Land...
"Not much of a bounce in 10yr Yield terms this morning = 2.14% with immediate-term downside to 2.06% this week if we continue to be right on that #Deflation data – looking for the JPM report tomorrow to be bearish on the margin too."
Pivoting to equity markets
Ford (F) is a good example of Old Wall storytelling that investors should buy on "gas prices are low" and "auto sales are good." Nope. That didn't work out so well.
Across the world...
No matter what you read from mainstream this morning, Chinese export/import data remains decisively bearish TREND. Take a look.
What about the rest of Asia? Funny you should ask...
We're sticking with our process that's helped our subscribers through these turbulent economic times.
