Editor's Note: Below is an excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
I’ll happily invest in US #GrowthAccelerating exposures (again) while the political class causes consensus to sell them to us.
When I went to my biggest cash position of the year (on May 11th), the title of this note was “Why Not Higher?” That’s where I explained why...
A) The S&P 500 was signaling immediate-term TRADE overbought
B) Front-month VIX, US Equity Volatility signals immediate-term TRADE oversold
C) US Dollar Index signals immediate-term TRADE overbought
D) UST 10yr Bond Yield signals immediate-term TRADE overbought
So, let’s grind through what the process says about points A, B, C, and D this morning:
A) The S&P 500 was signaling immediate-term TRADE oversold
B) Front-month VIX, US Equity Volatility signals immediate-term TRADE overbought
C) US Dollar Index signals immediate-term TRADE oversold
D) UST 10yr Bond Yield signals immediate-term TRADE oversold
Q: “Why?”
A: Because they are. It’s just math.
