Good morning, you can enjoy today's The Macro Show with Restaurants & Cannabis analyst Shayne Laidlaw and Director of Sales Daryl Jones 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) CHINA – Finally a big Counter @Hedgeye TREND bounce for Chinese stocks (which were -2.5% last week) with a +2.6% move to another lower-high within Shanghai’s Bearish @Hedgeye TREND. Tell yourself whatever story you want to hear after bounces, it’s preparing for what’s next that matters most (Copper also bouncing +0.8% within its Bearish TREND).
2) 10YR YIELDS – A Counter @Hedgeye TREND bounce in bond yields this morning as well with the Swiss 10YR Yield +4bps to -0.50% and UST 10YR Yield +2bps to 2.17%. We will wait on the USA’s PPI and CPI reports (next 2 days) to buy more Treasuries if yields bounce to lower-highs (top-end of the risk range on 10s now = 2.26%; i.e. a good spot to buy T-Bonds).
3) VIX – What a difference 1-month makes. Only 1-month ago there was an implied volatility PREMIUM of +56% (vs. 30-day realized) in the SPY and this morning that’s been pounded down to a -13% implied volatility DISCOUNT - both capitulations (bears covering shorts) and complacency (bulls at lower-low-volume-highs). Total U.S. Equity Volume was -12% vs. the 1-month average yesterday.
Bullish Insight
Why Anthem Shares May Double
Anthem (ANTM) recently jumped to the top of Hedgeye Healthcare analyst Tom Tobin’s list of longs, with some pretty interesting numbers to the upside.
According to Tobin, conservative models suggest a possible double for the healthcare stock.
That stands in stark contrast to some of Anthem’s rivals. Tobin says a pair trade with UnitedHealth Group (UNH) could be a great way to play the sector in the longer term.
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"We’re short UNH and Anthem is the perfect offset, because for all the reasons we’re short UNH, they’re going to play positively for somebody like Anthem, with the additional benefit to being highly levered to the government,” Tobin explains. |
CLICK HERE to watch the clip.
