Why Do We Like Energy? Rate Of Change

11/08/19 02:23PM EST

https://youtu.be/z1cQxxkDkEc

A new subscriber asked a good question on a recent edition of The Macro Show:

Why does Hedgeye like energy if the sector posted -38% y/y earnings growth in the third quarter?

As Hedgeye CEO Keith McCullough explains in the clip above, what we care about most is the Rate of Change (ROC). In other words, where is a sector coming from? And where is it going?

“A number that goes from really negative, to then less negative, and then positive – now that is a rate-of-change long. That’s energy,” McCullough explains

"If you bought it when earnings were at their most negative in the first part of 2016…and it went from minus-109.6% to minus-81.6%. That is rate of change positive.”

Watch the full clip above for more.

Why Do We Like Energy? Rate Of Change - real time alerts

© 2020 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.