• Global ‘Black Hole’ Risk Rising: A Discussion With Danielle DiMartino Booth

    Former Fed advisor Danielle DiMartino Booth will discuss key economic developments and the outlook for Fed rate cuts with Hedgeye CEO Keith McCullough.

Takeaway: We are adding UAL to the SHORT side of Investing Ideas today.

Below is a note from CEO Keith McCullough on why we're adding United Continental (UAL) to the short side of Investing Ideas:

With one of our favorite sectors to be short in Quad 4 (Industrials, XLI) imploding on their own earnings expectations again this morning, I'm looking to Industrials names that haven't yet collapsed.

One of those is United Airlines (UAL). The Old Wall loves it!

Jay Van Sciver, on the other hand, does not. His view is really a Quad 4 in Q4 view for UAL vs. management guidance:

"While we have Thanksgiving travel fares in our PRASM model for UAL, we limit the view to 3mo out.  That excludes end of year holiday travel, which could introduce some noise. Still, what we do see is enough to raise concerns about high expectations fading from the current robust demand environment."

Sell the bounce to lower-highs,

KM

UAL: Adding United Continental to Investing Ideas (Short Side) - ual