In this clip from The Macro Show, Hedgeye CEO Keith McCullough explains why tariffs being “paused” on Monday shouldn’t distract investors from the real signal. He emphasizes the importance of following the process—not the headlines.
“The signal on the Shanghai Composite Index, you’ll note, was Bullish on Friday morning,” he says.
“It didn't need to be bullish this morning.”
McCullough made clear that the trade deal—merely a pause in tariffs—had nothing to do with the signal flipping bullish.
“The first decision was don’t be short China... I had [shorts] when the signal was bearish and the economy was slowing, and now you don’t.”
He also reiterated his skepticism of China’s economic data, while underscoring its directional value.
“The Chinese government almost certainly makes up their GDP numbers, but getting the general direction of the data is a good indicator in how to position for China.”
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