CHART OF THE DAY: Long Healthcare vs. Short Financials

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.