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

The Score: US stocks are back to within 1% of SPY’s all-time closing high.

And, instead of what Mike Wilson calls a “rolling correction”, what we really have are textbook #Quad2 breakouts in Bond Yields, Commodities, Sector Styles, and Factor Exposures.

The only rolling corrections I see are in being long Treasuries, Gold, and “defensive” Equity Sectors and/or Factor Exposures:

  1. Consumer Staples (XLP) were down another -0.6% in an up tape yesterday and already -1.9% relative for OCT
  2. Utilities (XLU) were down another -1.0% yesterday and down -2.3% (relative to SPY) for OCT
  3. Healthcare (XLV) was down another -0.7% yesterday and is down -4.3% relative for OCT

For those of you who have friends who don’t count the score on either an alpha generating or relative basis, now you can send them the numbers. They aren’t mine. They are those of The Cycle.

CHART OF THE DAY: "Rolling Correction?" LOL - 10 19 2021 7 27 34 AM