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

CHART OF THE DAY: Need To Know → What Works In Each Quad - EDJhC4pXsAEds22

Looking at last week’s CNY/USD move, did The Machine know that China delivered critical #Quad2 data? In EUR/USD terms, does it know that Germany’s ZEW Index just popped to its highest level since July of 2015 this morning? Of course it does.

That’s why we use The Quads. In our quantamental process, The Quads often front-runs The Machine.

Does The Machine and all of its Quants know what an Up Dollar does to Dollar Driven Commodity Reflations? Yep, it deflates them. That’s what happened, generally, to Commodities last week:

  1. CRB Commodities Index corrected -0.7% within its Bullish @Hedgeye TREND
  2. Oil (WTI) corrected another -0.9% within its Bullish @Hedgeye TREND
  3. Gold (which isn’t a commodity) did nothing last week and remains Bullish @Hedgeye TREND   

CHART OF THE DAY: Need To Know → What Works In Each Quad - What Works In Each Quad