“Where there is a genuine vision, people excel and learn… not because they are told to, but because they want to.”
- Peter Senge
Of all the books I made time to read in 2020, The Fifth Discipline by Peter Senge was the most influential in terms of helping me think about building both the Hedgeye content platform and our growing business.
“As opposed to the all-too-familiar vision statement” Senge preaches that leaders should inspire a “shared vision”… it’s “not a cook-book but a set of principles and guiding practices.” (pg 9)
Fortunately, for all of us, despite all of the technological & communications evolution in America and abroad, there remains a massive opportunity to be the change of transparency & accountability that our profession needs.
Thank you for sharing this journey with me and my teammates @Hedgeye and Happy Holidays!
Back to the Global Macro Grind…
I’ll keep it tight this morning because I have some shopping to do (both #Quad2 Stahks! and gifts for family)…
Here are my Top 3 Things (published daily to premium subscribers by 6AM ET):
- KOSPI – South Korean Stocks (EWY) ramped another +1.7% overnight to new Cycle Highs and continue to look a lot better than Chinese Stocks (which continue to signal lower-highs); Long Japan +0.5% (EWJ) continues to work too
- VIX – down to 23.31 yesterday after an episodic and non-TRENDING cluster of volatility that you should have capitalized on Monday morning; #NazVol (NASDAQ Volatility) continues to break-down as implied volatility on QQQ rockets to a +99% PREMIUM vs. 30-day realized (that means consensus continues to hedge the whole way up)
- 10YR – instead of the consensus “Growth vs. Value” debate you hear on Old Wall TV, you should be having the Rate Sensitive Rotation debate as rotating out of Utes/REITS and into Tech, Cyclicals, Financials, Small Caps, etc. continues to get you paid with the UST 10yr Yield signaling Bullish @Hedgeye TREND and immediate-term upside to 0.98%
And here’s my extended list of Bullish/Bearish @Hedgeye TREND signals (in brackets) alongside their Risk Ranges:
UST 10yr Yield 0.90-0.98% (bullish)
UST 2yr Yield 0.11-0.16% (neutral)
SPX 3 (bullish)
RUT 1 (bullish)
NASDAQ 12,360-12,961 (bullish)
Tech (XLK) 124.51-130.72 (bullish)
Energy (XLE) 37.19-41.21 (bullish)
Financials (XLF) 27.96-29.07 (bullish)
Utilities (XLU) 60.21-62.24 (bearish)
Gold Miners (GDX) 33.95-37.20 (bearish)
Shanghai Comp 3 (bullish)
Nikkei 263 (bullish)
DAX 13175-13811 (bullish)
VIX 20.68-25.70 (bearish)
USD 89.51-91.04 (bearish)
EUR/USD 1.209-1.230 (bullish)
USD/YEN 102.77-104.13 (bearish)
GBP/USD 1.324-1.365 (bullish)
CAD/USD 0.77-0.79 (bullish)
USD/CHF 0.87-0.89 (bearish)
Oil (WTI) 46.09-49.54 (bullish)
Nat Gas 2.50-2.79 (neutral)
Gold 1 (neutral)
Copper 3.49-3.65 (bullish)
MSFT 216-226 (bullish)
AAPL 126-134 (bullish)
AMZN 3105-3271 (bullish)
FB 262-275 (neutral)
GOOGL 1 (bullish)
NFLX 501-542 (bullish)
TSLA 597-691 (bullish)
Bitcoin 20,499-25,560 (bullish)
Happy Holidays to you and your loved ones,
KM
Keith R. McCullough
Chief Executive Officer
