November 13th - Show Materials & Top 3 Things

11/13/18 08:37AM EST

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

November 13th - Show Materials & Top 3 Things  - Cannabis TMS SL 11.12.2018

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.”

CLICK HERE for more. 

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