Good Morning and welcome back to The Macro Show, you can watch the show live HERE and access the associated slides (once they become available) HERE.
Hedgeye's Top 3 Things
Below are the top three things from Hedgeye CEO Keith McCullough’s Macro Notebook this morning:
1) ALL-TIME HIGHS - All-time high trifecta again for the S&P 500 (2477), Nasdaq (6412), and Russell (1450) yesterday as “reflation” had a heck of a bounce within its bearish @Hedgeye TREND. With the top-end of our U.S. Equity Beta (S&P500) risk range only +0.3% higher at 2485, we would still be in booking-gains mode vs. purchases you made 3-4 weeks ago to setup to buy the next dip.
2) OIL - Following through on yesterday’s broad based Reflation Rally (Chinese demand is back, baby! - #not). WTI is up another +0.9% this morning and signaling immediate-term TRADE overbought within its bearish TREND; the risk range for WTI is now $45.13-48.56 and hopefully we get some Energy ETF and single stock overbought signals to act on today in RTA.
3) COPPER - One of these charts looks not like the others (Copper’s Supply situation looks much better than most things commodities too), but after moving back above our TREND signal level of $2.65 in recent weeks, we get the chart-chase to $2.85 this morning. Bullish indeed, but don’t forget Copper went from $2.92 to sub $2 in 2015-2016 too.
A Tesla Bull and Tesla Bear Debate
50% Upside or 50% Downside?
These two analysts couldn’t disagree more on the direction of Tesla’s (TSLA) stock price.
The first analyst, Brian Bolan from Zacks, is one of the biggest bulls out there. He thinks the sky is the limit for Elon Musk’s electric car company. Bolan says the stock is heading higher, to $450 and beyond.
The other analyst begs to differ.
Hedgeye analyst Jay Van Sciver believes the stock is a ‘blindingly obvious short.’ Van Sciver thinks Tesla is overly reliant upon government subsidies, is becoming increasingly vulnerable as competitors enter the EV market, and could conceivably go to zero.
Time will tell who’s got the story right.
***WATCH the full debate below as two analysts on opposite ends of the TSLA spectrum argue their case.
