CHART OF THE DAY: Obvious Broadening Of Inflation

10/25/21 07:49AM EDT

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

While I sometimes get accused of being “shorter-term” (which is fine, sometimes one needs to make short-term pivots!), Dollar Down, Commodities Up has been our Full Cycle Investing view since June of 2020:

  1. Oil (WTI) inflated another +2.5% last week, taking its TRENDING (3-month) return to +20.7%
  2. Rubber inflated +2.7% last week, taking its immediate-term TRADE momentum to +12.7%
  3. Oats inflated another +1.1% last week, taking its 1 and 3 month returns to +19.6% and +48.0%

Who’s writing about Rubber and Oats this morning? Personally I don’t wake up wanting to write about anything unless it either amplifies (or might change) my positioning. The BROADENING of inflation is the point of Rubber and Oats here.

CHART OF THE DAY: Obvious Broadening Of Inflation - 10 25 2021 7 18 30 AM

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