CHART OF THE DAY: Horrendous (UK Industrial Production)

12/11/18 07:58AM EST

Editor's Note: Below is a chart (and excerpt) from today's Early Look written by Hedgeye CEO Keith McCullough.

CHART OF THE DAY: Horrendous (UK Industrial Production) - zuk

Since calling out a -50% crash in an Emerging Market currency like the Argentine Peso (and their subsequent begging for a bailout from the IMF in EARLY 2018) is too easy to explain, let’s do the British Pound:

  1. Coming out of Q4 2017’s #PeakCycle UK inflation readings, the BOE was hawkish
  2. As we’ve rolled through 2018, the UK economy has slowed into #Quad4
  3. The British Pound has been an awesome short against our #StrongDollar call since April 

That’s right. I didn’t mention anyone’s political thoughts about Brexit, did I? Where do I think the Pound bottoms? Well, that’s pretty straightforward – when the rate of change of the UK economy stops slowing and comes out of Quad 4.

Yesterday’s Industrial Production print in the UK was horrendous at -0.8% year-over-year growth. Do you think the #slowing UK economy has affected the political prospects of Teresa May? Of course it has. 

CHART OF THE DAY: Horrendous (UK Industrial Production) - 12.11.18 EL Chart

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