New trade alert!
The next hot sector is starting to break out this week.
You could even say itโs coming back from the dead.
Hereโs the latest on the economy and stocks ๐
https://t.co/F7ScGnHO0r
๐คSemis and Mag 7 are a huge contribution to SPX returns.
If you don't own any of these stocks, you'll be left behind.
Key is knowing where the leadership is.
That's why market timing is important! (see our profile)
๐Chip stocks and manufacturing PMI move in lockstep.
But while chips are skyrocketing, PMIs are pausing.
Could be a signal of something worse to come.
The yield curve is signaling a manufacturing rebound.
Yield curve spread is a great predictor of the economy.
Steeper = strength. Flattening or inversion = slowdown.
See how the 2021-2023 flattening foreshadowed 3 full years of manufacturing recession.
Are we about to get a flattening again?
@Hedgeye This is a big deal. We wrote about it this week as well. Looks like they're doing everything humanly possible to pump this thing and get it out the door. Huge fees involved. Bankers get rich. Indexes get boosted. Insane times.
@neilksethi Following earnings is the key. It means there's fundamental support for the rally, not just hype/euphoria. We're a big believer in this rally and fully bullish
For 2 weeks we said stocks are over-extended and due for a pullback.
Our shorts worked, but pullbacks have been shallow and dips are bought aggressively.
Now our views have changedโฆ
https://t.co/GtUaxTKf0z
High gross leverage + mid net leverage = hedging or shorting by major hedge funds.
Understanding positioning of large market participants is key for market timing.