The market landscape has changed (dramatically) since August 1st when Hedgeye CEO Keith McCullough added SPY to the short side of ETF Pro. Complacent bulls tethered to rose-colored, narrative-driven hopes and dreams like AI are learning the meaning of gravity.
In case you missed it, the Russell 2000 (IWM) was down -1.6% yesterday. It’s down -12% since August 1st. The equal-weight S&P 500 (RSP) was down -1.1% yesterday. The SPY as a whole was flat yesterday, largely because the “Magnificently Manipulated 7” (Apple, Microsoft, etc.) were up +2%.
Make no mistake—there are a ton of powerful headwinds gathering force in the markets and economy. The days of bullish complacency appear to be over.
If you’re new to Hedgeye and the way we approach markets, we encourage you to check out Keith’s Red-Eye, Green-Eye app (it’s free on Apple and Android). This simple app generates a simple “Buy” or “Sell” signal based on proprietary, real-time data.
Watch the full clip above.
