CHART OF THE DAY: Inventory Cycle Getting Started

06/07/21 07:34AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

In addition to what’s still EARLY CYCLE (i.e. the LABOR market), this particular #Quad2 economy has plenty of INVENTORY shortages… because… wait on it… INVENTORY is coming off the LOWS of The Cycle too.

That’s been all good. We’ll stay long of #Quad2 in both Commodity and Global Equity terms, until The Singularity of my Signaling #Process tells me to do otherwise.

Two of the 4 Horseman (US Equity Sector Styles to be long of in #Quad2) led SPY back towards an ALL-TIME high last week:

  1. Energy Stocks (XLE) inflated another +6.8% on the week and remain Bullish TRADE and TREND 
  2. Financials (XLF) ramped another +1.3% on the week to new Cycle Highs as well

CHART OF THE DAY: Inventory Cycle Getting Started  - 6 7 2021 7 26 04 AM

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