Good morning, you can enjoy today's The Macro Show with Gaming, Lodging & Leisure analyst Todd Jordan and Macro analyst Ben Ryan 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) TECH – Leading losers at the Sector Style level yesterday at -3.5% (XLK) is your #1 Sector Underweight (Short) when in Quad 4. Utes and REITS were flat to up on a very red day so the playbook continues to play out here.
2) OIL – Down another -2.2% this morning, the crash in Crude Oil continues – WTI is down -23.3% since the beginning of OCT. Since it is the heaviest weight in our predictive tracking algo for future headline U.S. inflation (CPI) it’s now a trivial matter that the cycle peak for U.S. inflation is in; inverse correlation between #StrongDollar and Oil is now trending towards -0.8.
3) ITALY – No bounce for the Italian Stock market so far this morning (MIB Index is -23.3% since May) and Italian Bond Yields are up again this morning in kind (3.48% on Italy’s 10YR Yield). Eurozone ZEW for November of -22 (vs. -19.4 OCT) was horrific; don’t forget a big part of our #StrongDollar call remains Short Euros on #EuropeSlowing.
In Case You Missed It
Cannabis Investors, Proceed With Caution
JUST HOW INVESTIBLE IS THE CANNABIS SECTOR?
That’s one of the key questions addressed by our Cannabis analyst Shayne Laidlaw in this clip from a recent edition of The Macro Show. FYI—Hedgeye officially launched our new Cannabis research sector earlier this month.
Laidlaw provides a brief recap of our analyst team’s debut “Black Book” and advises some caution. He explains that investors should pump the brakes on any near-term boom expectations for the industry as a whole, given the rapidly changing regulatory environment in the U.S. and around the world.
“It’s a very dynamic industry and moving in the right direction from a growth perspective,” Laidlaw explains in the clip above. “But this is still 50 separate markets from a state perspective [in the U.S]. There’s nothing done at federal level.”
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