Good moring, you can enjoy today's The Macro Show 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) VXN - The Nasdaq’s version of the VIX ramped to the 99th percentile of ALL historical readings vs. the S&P 500’s front-month volatility reading yesterday. The VXN to VIX ratio prior all-time high was in early June to early July 2017 – if you bought the Nasdaq on that pullback, you had a great year.
2) EURO - The Euro is finally breaking @Hedgeye TRADE support of $1.18 this morning as the U.S. Dollar Index breaks out above what was immediate-term TRADE resistance post more #hawkish commentary from Yellen yesterday. Both headline GDP and inflation data are going to be hawkish, sequentially, for at least the next month don’t forget; European stocks love Down Euro – even Spain’s IBEX is +1.2% this morning on the FX move.
3) RATES - Fresh 5-year high in the UST 2YR Yield of 1.47% this morning as probability of a DEC hike ramps (as it should with Oil moving back to bullish TREND @Hedgeye in the last week). UST 10YR Yield +6bps to 2.29% and European 10YR Yields are having a great day too (German 10YR = +7bps to 0.47%). The probability continues to rise that the low for bond yields in 2017 is in = Bullish Financials; Bearish Gold, Utes, Staples.
Guest Contributor
How the Fed Failed
CLICK HERE for guest commentary written by Dr. Daniel Thornton of D.L. Thornton Economics. During his 33-year career at the St. Louis Fed, Thornton served as vice president and economic advisor. He currently runs D.L. Thornton Economics, an economic research consultancy. This piece does not necessarily reflect the opinion of Hedgeye.
