In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down IVOL Premiums and Z-scores, and how he uses them as signals for buying (and selling) opportunities. Specifically, he touches on Energy and (why he didn’t buy) Utilities.
"[Energy] has the highest Z-score out of everything, and its Implied Vol discount was -6% when everyone was chasing the chart. That was a month ago.”
“Here's the real takeaway - buy the effing dip. One month ago? It was sell the effing rip.”