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Below is a chart and brief excerpt from today's Early Look written by Macro Analyst Christian Drake.

With respect to the right now, here’s this morning’s Top 3 from KM, post-Powell as the Quad 2 train continues to steam forward:

  1. 10YR  yields around the world higher, again, this morning and evidently that’s good for Germany’s “stocks” with the DAX +1% to a new Cycle High alongside yesterday’s all-time closing SPY high – UST 10yr Yield ramping to 1.72% is a new Cycle High with The Curve steepening to a new Cycle High of +157bps wide on 10s/2s – great for the Financials (XLF)
  2. SECTORS – rates rising is bad for certain Sectors of “stocks”, eh – with both Utes (XLU) -1.6% and Staples (XLP) -0.2% on the day yesterday keeping them both DOWN for 2021 YTD (only 2 negatives in the Top 11 GICS Sectors); long Financials (XLF) was up another +0.7% yesterday to +16.8% YTD (it’s not about “growth vs. value”, it’s about Rate Sensitivity)
  3. VIX  big bullish Vol of Vol Signals yesterday delivering higher-highs in my Risk Ranges for everything from SPY to Energy (XLE) and Financials; top-end of my VIX Risk Range caved in to a lower-high of 23.59 with the downside in my Range falling to 17.54 and implied vol PREMIUMS in both XLF and XLE of +17% (that’s bullish for both)

CHART OF THE DAY: May Your Stimmy Be Plentiful  - CoD Dots