Editor's Note: Below is a brief transcript and a couple of charts from The Macro Show today featuring commentary from Hedgeye CEO Keith McCullough.
“For those of you looking for confirmation about the stock market being up, don’t look at volume. Go ahead. Ignore it. Nothing to see here.
Sure, the market was up yesterday but it’s up on fumes. This is what we’ve seen before in recent rallies. There’s no volume, no inflows to mutual funds, and the only thing lifting the markets are the bots and hedge funds doing their best not to go out of business. That’s why you see a lot of high short interest stock going up on literally nothing at this point."
"Let’s talk about sectors. There are plenty of sectors you don’t want to be long here as growth continues to slow in the coming quarters. Look at Consumer Staples (XLP), the best performing sector yesterday. That’s surely a signal that the economy is going to rip roar to the upside, right?
Uh, no. Not at all."
"In fact, the only sector you want to be long on any pullbacks is our favorite sector, Utilities (XLU). It’s been the best performing sector this year on growth slowing concerns while Financials (XLF), our favorite sector on the short side, have been getting absolutely hammered.”
