CHART OF THE DAY: Sector Styles Driving SPY To ATH

10/26/21 07:48AM EDT

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

The Machine (i.e. the market) doesn’t care about what you or I “feel” or “see.” It’s a discounting mechanism for the future. If you have a modern risk management #process to score it in terms of Sector & Factor Exposures, it’s obvious.

What Sector Styles drove the US stock market (SPY) to its 56th all-time closing high of 2021 yesterday?

A) #Quad2 Overweight, Consumer Discretionary (XLY) was +2.5% on the day to +10.1% for #Quad2 in Q4
B) #Quad2 Underweight, Consumer Staples (XLP) were down -0.1% on the day to +3.5% for #Quad2 in Q4
C) #Quad2 Overweight, Energy Stocks (XLE) inflated another +1.5% on the day to +12.9% for #Quad2 in Q4

CHART OF THE DAY: Sector Styles Driving SPY To ATH - 10 26 2021 7 37 16 AM

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