Below is a brief note from CEO Keith McCullough on why we're adding Grainger (GWW) to the short side of Investing Ideas today:
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Apparently Macro Tourists are confusing an inflation #accelerating ramp in Oil prices with a re-acceleration in global demand. Hedgeye Update on Global Growth: it's slowing. With that said, I'm looking to broaden our positioning to our favorite Sector Short - Industrials (XLI). I’ll add Grainger (GWW) to the list this morning as it is signaling immediate-term #overbought. Here's the intro to what Jay Van Sciver wrote to our Institutional Research subscribers: "We’ve been waiting for an opportunity to re-enter a short position in Industrial Supply, and the recent squeeze/rally in shares of GWW provides such an opportunity. While many focus on the competitive threat posed by Amazon Business and its ilk, accelerating competitive intensity from independent suppliers and other larger distributors have principally generated headwinds in the last few years." Make short selling great again, KM |
