Bear Market Macro: SP500 Levels, Refreshed...

“It happened just as I figured.  The traders hammered the stocks in which they figured would uncover the most stops, and sure enough, prices slid off.”
-Jesse Livermore, Reminiscences of a Stock Operator

No matter where the bulls go now, here we are. The Pain Trade is finally to the downside as a lot of players in this game are caught off-sides. This morning’s release of the II Bull/Bear Survey tells you most of what you need to know from a sentiment perspective. Bears dropped from 33% last week to 27.5% this week and that, my risk management friends, is not Bearish Enough.

In the US stock market, the inverse correlation to watch most closely here is SPY/VIX. We have been talking about this 22-23 support zone for the VIX and our Bear Market Macro line of resistance for the SP500 (1144) in meetings from Boston to Chicago and back again through NYC yesterday. As of 130PM EST, both have once again confirmed our bearish intermediate term stance on US Equities.
All that said, the SP500 is immediate term oversold anywhere south of the 1093 line and we’d be covering some shorts and buying some longs here for the immediate term snap back TRADE to 1111. This isn’t a time to freak out and sell everything. Do that when the VIX is at 23 again.


Bear Market Macro: SP500 Levels, Refreshed...  - image001


Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more

Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

read more

Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

read more