We shorted Melco Crown (MPEL, quote) in early March ($43.00) as we felt the combination of slowing top line Macau growth and an expensive valuation were enough to warrant a move lower to the key $35.00 level.
Stay Long Palladium vs. Gold:
Bounce to continue. Trade the .2200 – .2300 range here.
We have sketched the MXEF Index back to April of 2010 to encompass a period of peaking EM valuations in the fall of 2010, and the ensuing periods of stress from peaking PMIs, dramatically slowing China, Fed stress, local policy failures, and capital flows out.
Gold continues to see pressure from the US economy as the spring thaw is yielding strong macro from the formerly frozen US economy.
The bear rally in Gold (GLD, quote) disguised as some form of new structural rally for the yellow metal looks ready to break back below $1300 as US growth continues to show strength and the Fed cannot pullback from their course.
Today is the 18th day of 21 days where Emerging Market equities have outperformed the SPX.
We said 52K on the Ibovespa was a place to take profits.