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Another Great Opportunity To Get Long #GrowthSlowing

Takeaway: Mr. Market is giving investors another shot to get long Utilities and the Long bonds.

Another Great Opportunity To Get Long #GrowthSlowing - growth escalator cartoon 04.29.2016

 

I said it back in December, and I’ll remind you again today – if the Fed hikes into a slowdown, they’ll implode (#Deflate) markets.

 

What should you do with that?

 

Again, it’s where mean reversions come from that lead false narratives – the 10yr Yield was oversold at 1.70% and bounced… but A) post a GDP print of 0.5%, B) a NFP print of 163k and C) a headline CPI of 1.1% y/y… GROWTH has trumped (pardon the pun) inflation the entire way and I think it will again – this chart is beautifully bearish TREND on growth.

 

 

I don’t want to say layup (because I’m a 5'9" hockey player who is bad at hoops), but if you have our GDP, employment, and consumption slow-down view in Q2/Q3, it’s the best spot you’ve had since DEC to buy Utilities (XLU) and short the Financials (XLF and KRE).

 

Here's the sector breakdown of what's working in 2016... Got Utes yet?

 

Another Great Opportunity To Get Long #GrowthSlowing - sector 5 19

 

In other words, we can finally get long #GrowthSlowing in a bigger way now.


Daily Market Data Dump: Thursday

Takeaway: A closer look at global macro market developments.

Editor's Note: Below are complimentary charts highlighting global equity market developments, S&P 500 sector performance, volume on U.S. stock exchanges, and rates and bond spreads. It's on the house. For more information on how Hedgeye can help you better understand the markets and economy (and stay ahead of consensus) check out our array of investing products

 

CLICK TO ENLARGE

 

Daily Market Data Dump: Thursday - equity markets 5 19

 

Daily Market Data Dump: Thursday - sector performance 5 19

 

Daily Market Data Dump: Thursday - volume 5 19

 

Daily Market Data Dump: Thursday - rates and spreads 5 19


REPLAY | Today's Healthcare Q&A with Tom Tobin | $HCA $AHS $MDRX $ATHN $HOLX $ILMN

 

key healthcare insights you can't afford to miss

CLICK HERE to access the associate slides.

 

 

Today at 12PM ET our Healthcare analysts Tom Tobin and Andrew Freedman discussed their top ideas and the latest trends in the Healthcare space.

 

Topics included:

  • #ACATaper thesis update with latest employment and JOLTS reports and implications for HCA Holdings (HCA) and AMN Healthcare Services (AHS)

  • Allscripts (MDRX) earnings recap and latest thoughts on attrition

  • Athenahealth (ATHN) and Hologic (HOLX) tracker updates

  • Illumina (ILMN)…. Throwing our hat into the ring


Daily Trading Ranges

20 Proprietary Risk Ranges

Daily Trading Ranges is designed to help you understand where you’re buying and selling within the risk range and help you make better sales at the top end of the range and purchases at the low end.

Why The 10-Year Yield May Make All-Time Lows

 

In an excerpt from The Macro Show earlier this week, Hedgeye CEO Keith McCullough responds to a subscriber’s question about whether the yield on the 10-year U.S. Treasury note will fall below 1.50%.


CHART OF THE DAY: Remember What Happened When The Fed Hiked In December? We Do.

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.

 

"... If the Fed RAISES RATES (June) into this slow-down, they’ll be the catalyst for DEFLATION (down yields) again anyway.

 

That last part is the part Consensus Macro got smoked by when they bought the Financials (XLF) and shorted “expensive” Utilities (XLU) in December 2015 on the DEC Rate Hike. The Fed drives the Dollar; the Dollar doesn’t drive the Fed."

 

CHART OF THE DAY: Remember What Happened When The Fed Hiked In December? We Do. - 05.19.16 EL Chart


Cartoon of the Day: Crash Tech Dummies?

Cartoon of the Day: Crash Tech Dummies? - NASDAQ cartoon 05.18.2016

 

"The Nasdaq moved back into full-blown correction mode yesterday (-10% from its all-time bubble high in 2015)," Hedgeye CEO Keith McCullough wrote earlier this morning. It's now down -9.5% from that high today.

 

Phew!

 

"Inclusive of the Buffett-bounce in AAPL," McCullough continues, "the Nasdaq is down -4.8% in the last month alone. Lots of chart chasers are not liking their Tech charts anymore (reminder: at #TheCycle peaks of 2000 and 2008 the Nasdaq put in its YTD highs in MAR-MAY too)."


Early Look

daily macro intelligence

Relied upon by big institutional and individual investors across the world, this granular morning newsletter distills the latest and most vital market developments and insures that you are always in the know.

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