We stumbled across a misleading MarketWatch headline this morning.
Sure, most European stock indices are up between 0.8% and 1.6% this morning. But "regain ground"? That's a bit of a stretch. Many European equity markets are still in crash mode. Like Germany, Hedgeye CEO Keith McCullough writes in a note sent to subscribers this morning:
"How many bear market bounces of greater than +1% have European Equity bulls chased since the DAX topped 2015? A: too many; DAX +1.3% this am to 9493 with a risk range of 9208-9770; remains in #crash mode (-23.4% from 2015 Global Equity #Bubble high) and a great short selling opportunity at top-end of my range"
That's right. Today, at 11AM ET our Macro team will be hosting our Q3 Macro Themes Call. #EuropeImploding is one of our top three themes. Here's additional analysis from McCullough:
"Moving away from staring at yesterday’s news, I’ll spend time on our Themes call discussing the rising risk of #EuropeImploding from within; with all eyes on British Pound Devaluation, there’s a much bigger picture to discuss linking European #GrowthSlowing (from the 2015 cycle high) to political zeitgeist via this young currency experiment."
More to be revealed.
(Email email@example.com for access to our institutional Q3 Macro Themes Call.)