CHART OF THE DAY: Use The Ranges To Fade The FOMO

10/09/19 08:57AM EDT

 Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. 

Who in their right mind was chasing FOMO US Equity Futures 1-month ago today ahead of both #Quad4 in Q3 economic data and Q3 Earnings Season?

Yesterday, one client actually thought the start to Q3 #EarningsSlowing Season was a typo at -19% year-over-year aggregate EPS growth for the SP500 Q3-to-date. It wasn’t. Only 18 of the SP500’s companies have reported so it is skewed.

Can you imagine year-over-year SP500 earnings being down -15-20% year-over-year?

If you’ve been in this business as long as I have, your imagination doesn’t have to be all that creative. Post #PeakCycle year-over-year SP500 Earnings Growth of +23% in Q3 of 2000, within a year, that’s were earnings #slowed to.

CHART OF THE DAY: Use The Ranges To Fade The FOMO - Chart of the Day

CHART OF THE DAY: Use The Ranges To Fade The FOMO - early look

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.