CHART OF THE DAY: Long Healthcare vs. Short Financials

05/05/20 07:41AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

  1. SECTORS – “leaning net long” means A) I covered all of my Global Equity ETF shorts during the 3-day decline and B) bought something like US Healthcare (XLV) which is signaling Bullish @Hedgeye TREND. Happy to re-short the Russell (IWM) again and/or the Financials (XLF), Industrials (XLI) if/when they bounce alongside both Global and US Equity Beta this morning
  2. EARNINGS – even if I look at Relative ROC (rate of change), Healthcare is a Long vs. Financials Short. 297 of the SP500s companies have reported an aggregate y/y EPS #recession of -8.9%, but the Financials Earnings are down -38.1% vs. Healthcare Earnings +5.2%

Is going net long unconstitutional? Not in my p.a. it isn’t. I wouldn’t be surprised if I’m back to net short by Thursday either.

CHART OF THE DAY: Long Healthcare vs. Short Financials - Chart of the Day

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.