CHART OF THE DAY: History's Highs #Overbought

08/08/17 08:04AM EDT

Editor's Note: Below is an excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look.

Circling back to yesterday’s signals (I issue them daily with my Real-Time Alerts service):

  1. SP500: the top-end of my immediate-term @Hedgeye Risk Range = 2483
  2. Total US Equity Market Volume (including dark pool) was +3% vs. its 1-month average yesterday
  3. VIX: the vol of volatility isn’t signaling that the VIX closes much below its all-time low of 9.31 

Based on my risk ranges, if I was running a hedge fund again:

A) My longs were overbought
B) My shorts were oversold 

When that happens, the playbook of the process says you simply book some gains and raise cash so that you can re-invest on pullbacks to the low-end of the range in whatever it is that you might like at lower prices.

CHART OF THE DAY: History's Highs #Overbought - 08.08.17 EL Chart

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