The most critical signal coming from Mr. Market is simple.
- S&P 500: Lower Highs…
- VIX: Higher Lows…
That’s why we’ve been suggesting subscribers book some gains.
Yes, we’ve been bullish on the U.S. stock market—particularly Nasdaq (QQQ) and Biotech (IBB)—over the past 9 months. But when the market indicates equities are overbought, we don’t argue with what our quantitative risk management process is telling us. In the video clip above from this morning’s Macro Show, Hedgeye CEO Keith McCullough explains this process.
Here’s an excerpt:
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“That’s why you sell the rip. That’s why when futures are up this morning after an intraday rally yesterday you sell, you don’t buy. That’s why on the lows yesterday you could cover some shorts. That’s what we did in Real-Time Alerts. It’s all timestamped.” |
Watch the video above for more.