"And the bounce… off fresh YTD closing lows, across Global Equity markets – that’s what bear markets do," Hedgeye CEO Keith McCullough wrote in a note to subscribers this morning.
Here's more analysis from McCullough:
"Does Draghi need to burn the Euro for European Equities to stop crashing? Yes. Down Euro -0.4% vs. USD this morning finally stopped the DAX at a -30% crash (since 2015’s high) – Italy’s crash (MIB Index) was -34%! This stops Gold from going higher this am too (Up Dollar) – my FX volatility signal is surreal (Euro risk range 1.07-1.14)"
Speaking of bounces...
"What will a +4.5% bounce in oil prices off new cycle lows do? Keep Oil Volatility (OVX) astonishingly bullish – and that is bearish for the TREND call on everything Energy which remains bearish – risk range on OVX is, get this, 62-79! (immediate-term risk range for WTI = 25.98-29.99) – bear markets don’t end in big media sponsored bounces."