In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down why he recently offset his China short (which he initiated in April 2021) by going long Alibaba (BABA).
"This is what a pro does. They go ‘Okay, I have to find a way around this (China signaling higher-lows within a Bearish Trend). I have to find a way to not be naked short China.’ So #2, I start going down (Hedgeye China analyst) Felix’s list, and Alibaba (BABA) was a long.”
"What do you want to be in during #Quad3 Stagflation? You want to be long larger-cap, and you want to be short smaller-cap. China’s in…? Quad 3.”