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Cartoon of the Day: Herd Mentality

Cartoon of the Day: Herd Mentality - Bull herd cartoon 03.18.2016

 

Definition of "Herd Mentality" via Wikipedia:

 

"Herd mentality, or mob mentality, describes how people are influenced by their peers to adopt certain behaviors, follow trends, and/or purchase items. Examples of the herd mentality include stock market trends, superstition and home décor... Driven by emotional reactions such as greed and fear, investors can be seen to join in frantic purchasing and sales of stocks, creating bubbles and crashes."


McMonigle: 'Oil Production Freeze Without Iran Is No Freeze'

In light of recent discussions between OPEC and Russia about an oil production "freeze," Senior Energy Analyst Joe McMonigle at Potomac Research Group explains Iran's plans to ramp up production and why that is bearish for the price of oil, freeze or no freeze.

 

CLICK the IMAGE below TO WATCH MCMONIGLE ON BNN.

McMonigle: 'Oil Production Freeze Without Iran Is No Freeze' - mcmonigle pic


Why This Presidential Election Will Be A ‘Bare Knuckle Brawl’

 

In this brief HedgeyeTV video excerpt, Potomac Research Group Chief Political Strategist JT Taylor recaps Super Tuesday, with Hedgeye Director of Research Daryl Jones, and discusses who will be the next Democratic and Republican nominees.


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Big Bang Theory: The Failure Of Global Central Bankers

Big Bang Theory: The Failure Of Global Central Bankers - big bang

 

Can central planners arrest economic gravity?

 

Nope.

 

Here's how that is playing out in macro markets via Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning:

 

"Being bearish on the big 3 global Equity indexes (Nikkei, DAX, and SP500) continues to pay off in long/short space (vs. Long TLT, XLU, GLD); this will not be highlighted by the bulls but the Nikkei closed down for the 4th straight session overnight = down -12.1% YTD (vs. DAX -8% YTD) and teetering on going back into #crash mode (-20% from July highs)"

 

 

Japanese equities are falling because of what McCullough has dubbed the #BigBangTheory. In other words, as McCullough says, the idea is that "central-market-planning (or QE)… could easily implode if the #BeliefSystem that humans can bend and smooth economic gravity crashes." 

 

In short, what happens when macro markets no longer believe in the omnipotence of central bankers and equities and currencies move in direct opposition to policymaker's intent?

 

That's a reality now. Here's a chart of (strengthening) Yen and (crashing) Nikkei post BOJ negative interest rates:

 

Big Bang Theory: The Failure Of Global Central Bankers - boj nikkei

 

It's happening in the Eurozone too. Despite ECB head Mario Draghi's best efforts to burn the euro, the currency is actually up 3.8% this year versus the U.S. dollar. Meanwhile, look at the year-to-date performance of European equities:

 

  • Germany's DAX: -7.9%
  • Italy's FTSE MIB: -12.7%
  • France's CAC 40: -4.8%

 

Big Bang Theory: The Failure Of Global Central Bankers - Draghi cartoon 03.09.2016

 

Watch out!


[UNLOCKED] Keith's Daily Trading Ranges

We've made some new enhancements to Daily Trading Ranges - our proprietary buy and sell levels on major markets, commodities and currencies sent to subscribers weekday mornings by CEO Keith McCullough. Click here to view a brief video of McCullough explaining how to use it most effectively.

 

Subscribers now receive risk ranges for 20 tickers each day -  the last five of which are determined by what's flashing on Keith's screen and by what names subscribers are asking about. Click here to subscribe.

 

  • Bullish Trend
  • Bearish Trend
  • Neutral

INDEX BUY TRADE SELL TRADE PREV. CLOSE
UST10Y
10-Year U.S. Treasury Yield
1.98 1.79 1.91
SPX
S&P 500
1,974 2,049 2,040
RUT
Russell 2000
1,055 1,099 1,091
COMPQ
NASDAQ Composite
4,630 4,815 4,774
NIKK
Nikkei 225 Index
16,595 17,248 16,936
DAX
German DAX Composite
9,502 10,105 9,892
VIX
Volatility Index
14.08 20.81 14.44
USD
U.S. Dollar Index
95.51 97.42 94.80
EURUSD
Euro
1.09 1.13 1.12
USDJPY
Japanese Yen
111.02 114.01 111.44
WTIC
Light Crude Oil Spot Price
34.59 41.52 41.67
NATGAS
Natural Gas Spot Price
1.69 1.96 1.93
GOLD
Gold Spot Price
1,230 1,285 1,258
COPPER
Copper Spot Price
2.16 2.31 2.29
AAPL
Apple Inc.
99 107 105
AMZN
Amazon.com Inc.
530 584 559
MCD
McDonald's Inc.
118 124 123
XLU
Utilities Select Sector SPDR
46.24 49.47 49.31
XLF
Financials Sector SPDR
21.65 22.94 22.63
TIF
Tiffany and Co.
65.11 71.91 70.12


RTA Live: March 18, 2016

 


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