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

Those Full Investing Cycle returns are pounding any “mid cycle” narrative and/or the results associated with being long “defensives” with the SP500 ramping to within 1.4% of her all-time closing highs and Staples and Utes lagging, big time.

While the Full Investing Cycle Returns for Commodities include Cycle Time when in either #Quad3 (in Q3) or #Quad2 (in Q4), we should be looking at 1-month Returns when scoring the Phase Transition that is only 1-month old into #Quad2:

  1. Financials (XLF) were up another +1.3% last week, taking 1-month price momentum to +4.4%
  2. Consumer Discretionary (XLY) was up +3.5% last week, taking 1-month price momentum to +2.8%
  3. Energy Stocks (XLE) were up another +1.3% last week, taking 1-month price momentum to +14.1%

CHART OF THE DAY: A Convincing #Quad2 - 10 18 2021 7 51 14 AM