In necessary things, unity;
in doubtful things, liberty;
in all things, charity.
- Richard Baxter
Dear Members of the Hedgeye Family,
I hope that you had the best of Thanksgiving celebrations. Maybe your festivities were different than they have been in prior years? Maybe the circumstances our world finds itself in made for a better celebration this year? Perspective matters.
Recognizing that significant portions of our society are in pain also matters. If you wake up this morning feeling anxious about the future, I really am sorry to hear that. I know that better days are ahead. For you. For your family. For your loved ones.
In a letter to our staff this past week, I wrote that humans are conditioned to remember the good over the bad. Perseverance matters to the human condition. If you are reading this note this morning, you are already looking forward. And that matters.
Which brings me to Hedgeye Cares. Our employee driven charity was formed to help those in need in our community.
Typically, we host an annual Charity Golf Tournament to raise funds. This was not possible in 2020.
I expect it comes as no surprise to learn that the charities we support rely on you & us. So today, I am asking for your donation to Hedgeye Cares.
Hedgeye Risk Management will match the first $100,000 raised dollar for dollar. Please donate HERE.
Hedgeye Cares charges no expenses. 100% of the funds we all donate will end up with the charities we support.
Many in our community have had success this year. I think of our customer Jeffrey Weber, who donated an extraordinary $50,000 to New Haven public schools in April. Certainly one of the highlights of my year. Rarely have our communities needed the generous support of those who can afford it more than today.
Please help and do your part to support Hedgeye Cares today.
To name but a select few of the causes dear to Hedgeye’s employees:
- BCYL – The Bridgeport Caribe Youth Leaders, an organization dedicated to children and helping them build the character and self-esteem they need to reach their full potential and value in society.
- Domus Kids, Inc. – Helping families create the conditions necessary for children to get on a path toward health and opportunity so they can succeed in school and ultimately lead satisfying and productive lives.
- Sean Parker Center for Allergy & Asthma Research – Aiming to discover underlying immune mechanisms against these diseases and develop a lasting cure.
- Mary & Eliza Freeman Center for History & Community – To restore, preserve, and ensure the viability of the Mary and Eliza Freeman Houses; teach the history of Connecticut Blacks; revitalize the surrounding South End community; and facilitate the preservation and revitalization of other African American, and greater Bridgeport historic/preservation communities.
These charities and others are hoping for our contribution. Remember, Hedgeye will match the first $100,000 donated. Let’s do this!
Back to the Global Macro Grind…
Here are the Top 3 Things that Hedgeye CEO Keith McCullough has highlighted for this morning:
- USD (bearish, oversold) – finally signaling immediate-term TRADE #oversold here (i.e. low-end of the Risk Range) with big Long Inflation holdings like Oil, Copper, and Energy Stocks signaling immediate-term TRADE #overbought within their Bullish @Hedgeye TRENDs
- ASIA (bullish) – another excellent overnight session for those of you with Full Investing Cycle Asset Allocations to Chinese and Japanese Equities which were up another +0.4% and +1.1%, respectively, taking the Nikkei to +13.5% in the last month alone!
- VIX (bearish, oversold) – post a nice buy signal for both Tech and the NASDAQ earlier this week, both are signaling immediate-term TRADE #overbought this morning alongside an #oversold VIX (low-end of my Risk Range); implied vol DISCOUNT of -25% for Tech (XLK) AFTER the 2-day ramp in price with NASDAQ scoring an all-time closing high
Immediate-term @Hedgeye Risk Range with TREND signal in brackets:
UST 10yr Yield 0.82-0.95% (neutral)
UST 2yr Yield 0.14-0.19% (neutral)
SPX 3 (bullish)
RUT 1 (bullish)
NASDAQ 11,714-12,134 (bullish)
Tech (XLK) 119.12-123.32 (bullish)
Energy (XLE) 33.95-40.94 (bullish)
Gold Miners (GDX) 32.60-35.95 (bearish)
Shanghai Comp 3 (bullish)
Nikkei 25199-26685 (bullish)
DAX 122 (bearish)
VIX 21.01-25.92 (bearish)
USD 91.81-92.66 (bearish)
Oil (WTI) 42.05-45.99 (bullish)
Nat Gas 2.53-3.08 (bullish)
Gold 1 (bearish)
All the best,
Michael A. Blum
President & Co-Founder
