• Investing Insights & Exclusive Offers → Get Our FREE “Market Brief”
    Sign-up for our free weekly newsletter. Get unparalleled investing insights and exclusive Summer Sale discounts on Hedgeye research.

    Disclaimer: By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. Use of Hedgeye and any other products available through hedgeye.com are subject to our Terms Of Service and Privacy Policy

Below is a brief excerpt transcribed from today's edition of The Macro Show hosted by CEO Keith McCullough.

Don't Let Quad 4 FOMO Crush You - mccullough

Keith McCullough: The first thing I want to talk about this morning is “stocks”! You’ve got to buy stocks! It’s an American FOMO thing. Do you feel it? You can’t see this “buy stocks!” mentality in terms of markets abroad really giving a damn anywhere. Global equities across the board, there is not one major global equity market that is bullish trend on my signal.

That’s pretty clear in as much as the Global QUAD 4 data is.

This is after a US Equity rally to lower highs on decelerating volume. Look at the graph, it was abysmal. Those that have the FOMO, don’t know this. 

Don't Let Quad 4 FOMO Crush You - volume

McCullough: There is a simple relationship in Macro. As the rate of change of the economy slows, political relationships sour. So to blame it all on trade wars is not only politically convenient, but its just stupid. You have to consider the cycle I just showed you this. 

Can today’s Chinese economy comp the mountainous comps of yesteryear? And then there are the secular issues. Which begs the question is China similar to the Japan of the early 90’s as we enter the early 2020 period?”

Don't Let Quad 4 FOMO Crush You - What If The Red Line Keeps Doing What It s Been Doing All Along

Darius Dale: There’s a question from a subscriber here that gets to your initial point about FOMO. Is the Plunge Protection Team really a thing?

McCullough: Yea it’s a thing that people want to feel, they need to know, the FOMO, the fear of missing out crowd wants to believe that there’s a Fed put and a Trump tweet that saves the day. That’s what it is.

Our model doesn’t become unhinged on those things.

It starts with the QUADs, then we cover low, re-short those bounces particularly if they are driven by FOMO, Trump tweets, the Plunge Protection Team, the Fed put or whatever.

It only helps us risk manage our core positions more aggressively. You’ll notice it creates more volatility. When you need more people to protect the market or protect it from economic gravity, then of course it becomes a less believable thing, which is why the President of the United States had to literally make something up.

Don't Let Quad 4 FOMO Crush You - the macro show