Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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UST 2yr Yields rising as High Yield “risk” (spreads) is falling is a fractal Similar Set that only happens when the US economy is #accelerating on a TRENDING basis. Not that anyone who was “degrossing” or “feeling” on Friday was allowed to notice, but alongside a Goldilocks #Quad1 OCT/NOV (with revisions) US Jobs report, the ISM Services report for NOV #accelerated to an ALL-TIME-HIGH of 69.1. Was that “why” Chinese (+1.2%), Indian (+0.8%), and Italian (+0.3%) stocks were all UP on the week? Is that “why” stocks opened +0.7% higher in London this morning AFTER the FTSE was UP +1.1% last week? I don’t know. I try not to anchor on “why” and focus more on both “when” and “what is.” |
