Below is a brief excerpt transcribed from Thursday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.
Lets talk volatility.
For those of you who are new subscribers, what happened on Monday and Tuesday is that the volatility of volatility was signaling a non-breakout in front month VIX. What I did on that was cover some shorts, and I got longer of commodities, stocks and bonds on the things that go up in Quad 3.
What do you mean you bought stocks in Quad 3?
Well, there are plenty sectors and sub-sectors to be long in Quad 3. Just look at today's Chart of the Day.
You can see the top 4 sectors as Tech, Utilities, REITs, and Energy, but I also bought Biotech earlier in the week on an immediate term trade over sold signal. Just like tech, Biotech enjoys top down growth slowing because you but the growth that you can find.
The point this morning is that you already had your oversold signal. So if you missed those, too damn bad.
It’s 2020 to date.
