Bullish signals have been lighting up across the Hedgeye process, yet CEO Keith McCullough urges investors not to get caught up in the euphoria—especially when it comes to high-risk plays like the 2x levered long Tesla ETF (TSLL).
"That thing traded 258 million shares on an up 9% move, and it failed at trend," McCullough says.
"This whole 'Mother of All Bubble" behavior continues to be a big thing that is a function of free post-pandemic money the government gave people, free, no-commission trading on Robinhood."
If you want to chase the bullish trends, "have at it, other than Tesla and Apple that remain bearish TREND." McCullough says.
Still, he advises caution. The S&P 500 and global equities are starting to flash overbought signals and could be carving out lower highs—a setup we're watching closely.
"Once we start to see legitimate lower highs in the index and immediate-term trade breakdowns, we're going really start to remind you where all the bodies are."
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