CHART OF THE DAY: Trust The Non-Linear Process

03/10/20 08:08AM EDT

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

CHART OF THE DAY: Trust The Non-Linear Process - 12.12.2018 bear bouncing world cartoon 1

US Equity Futures are currently up +4-4.5%, but the top-end of my Risk Range is +6.5% higher (2924) from yesterday’s close. That market price would be a gift, for those who didn’t sell on CNBC’s “Biden Surge” last week.

Selling bounces in a developing bear market is a skill. You need a non-linear process for that.

Obviously if you lose -20% of your money in something you need to be up +25% to get back to break-even. Part of why people are forced to sell bounces is a behavioral loss-aversion reality too don’t forget.

CHART OF THE DAY: Trust The Non-Linear Process - Chart of the Day

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