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Takeaway: Despite today's pop, European equity markets like Italy and Germany are crashing.

Europe's Got 99 Problems (And Brexit's Just One) - Growthslowing europe

If you think Brexit fallout and uncertainty are the only catalysts for further European equity declines, think again.

As Hedgeye CEO Keith McCullough writes in a note sent to subscribers earlier this morning:

"As we’ve outlined since the beginning of the year, #EuropeSlowing will become more obvious when Germany, France, Italy, Spain, etc. lap peak cycle GDP comps in Q2/Q3 - #Brexit was just a preview to what Europe will look like as the causal factor (#GrowthSlowing) becomes obvious; watch out below if EUR/USD $1.05 breaks."

Here's what that damn #EuropeSlowing data looks like this morning... a sea of red:

This is what #EuropeSlowing looks like in equity market terms...

Take a look at Germany's DAX... just terrible:

And Italian equities:

And here's the European equity market drawdown map with the pop today versus the crash from 2015 highs for context:

Europe's Got 99 Problems (And Brexit's Just One) - european equities 6 28

In essence, bear markets bounce but peel back the charts a little bit further to reveal the underlying reality.

And now for a bit of math:

Using the 35% drawdown in Italian equity markets as an example...

Don't do that to your portfolio. We've told our subscribers to have a 0% allocation to International Equities for some time now. Here's why: