A subscriber asked whether certain factors were signaling that the U.S. dollar was about to change trend on The Macro Show this morning.
“The dollar is long-term tail bullish. It would have to break down materially from here for that to change,” explains Hedgeye CEO Keith McCullough. “But it is bearish from an immediate-term trade perspective.”
When something is 1) bearish trade and 2) at the top end of the range, as the U.S. dollar is now, that information alone is enough for McCullough to act.
“What else do you need to know? Nothing. But we do have this open question about the debt ceiling,” adds Hedgeye’s Risk Manager In Chief. “We could easily go back and say, ‘What a wonderful selling opportunity. The thing that we’ve held for a long, long time is right at the top of the range into event risk.’ Fine. I don’t have to give a speech about the American dream. That’s it.”
Watch the full clip above.
