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Will L/S hedge funds rethink their nets?

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World manufacturing is still losing momentum

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Stifel has found a use for Bitcoin - a "signal" for when stocks will bottom

Stifel's macro guru Bannister outlines a few interesting bullets:

1. We monitor several factors which we believe will mark the capitulatory low for stocks. One on that long list is Bitcoin...which we believe still has downside to about $15,000 (though for stocks much less downside, in our view, only ~5% at most)

2. Sinking money M2 supply weighs on equities...but even more so on BTC

3. BTC is GDP sensitive, so watch PMI manufacturing index closely "...indicating that a last, capitulatory Bitcoin drop may be still ahead."

4. Tighter financial conditions should weaken BTC

5. Bitcoin falls when ERP rises

In summary he writes that BTC is late to the capitulation in risk assets and that the wash out he sees coming for BTC will help time the equity low. Note the BTC chart is log scaled.