CRASHING: (S)pain Trade

Takeaway: European growth is still slowing. The Spanish IBEX is down -27% from its cycle high of 2015.

CRASHING: (S)pain Trade - Spain pain 

While not as sexy as a Brexit headline, the Spanish election is heating up (voting begins on June 26th). Investors should be weary. Polls show that left-wing parties could come close to a parliamentary majority.


Here's analysis via Hedgeye CEO Keith McCullough in a note sent to subscribers this morning:


"SPAIN – Brexit is newsier, but this Spanish Election (June 26) still matters – as does European #GrowthSlowing; Spain’s IBEX -0.15% after the 1-day bear market bounce remains in crash mode -27% from #TheCycle highs of 2015."


Dr. Copper's Diagnosis? Global #GrowthSlowing

Takeaway: Copper #Deflation resumes with a -1% decline back to $2.07/lb this morning.

Dr. Copper's Diagnosis? Global #GrowthSlowing - global growth.sick bull cartoon 08.24.2015


Here's analysis via Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning: 


"At $1.47 GBP/USD, from an FX market @Hedgeye immediate-term TRADE signal perspective, a Remain vote is priced in. Copper – the Doctor appears to be heading for the exits ahead of the crowd on that; Copper #Deflation resumes with a -1% decline back to $2.07/lb this morning; WTI down -0.9% as Oil Volatility remains around 40."


CHART OF THE DAY: Sell On The News Anyone?

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.


"... As the vote to Remain ramped, so have these bets. Going back to the week prior, the net SHORT position in GBP/USD hit its YTD high at -2.39x on a 1-year z-score.


And now, my immediate-term risk range process is implying that the asymmetry (in Pound terms) is to the downside with an immediate-term GBP/USD risk management range of $1.40-1.47.


Sell on the news anyone?"


CHART OF THE DAY: Sell On The News Anyone? - 06.21.16 Chart

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Cartoon of the Day: Short-Sighted

Cartoon of the Day: Short-Sighted - Brexit cartoon 06.20.2016


Investors caught up in Brexit risk can't see the forest for the trees.


"Our long-cycle call for #GrowthSlowing won’t die this morning either," Hedgeye CEO Keith McCullough wrote in this morning's Early Look. “No Brexit” or not, it’s booked until at least Q3/Q4 when macro markets have fully priced it in."

Why WisdomTree Still Has 50% Downside | $WETF

Takeaway: Dark skies for WisdomTree don't appear to be abating anytime soon.

Shares of WisdomTree (WETF) are down over 35% since Hedgeye Financials analyst Jonathan Casteleyn issued his short call earlier this year. In the excerpt below from The Macro Show this morning, he explains why WisdomTree funds are hemorrhaging money and are overly dependent on easy money.

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