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Below is a brief excerpt transcribed from Wednesday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.

McCullough: "You Need Your Head Read If You Bought Stocks Yesterday" - 4 1 2020 12 04 51 PM

Let's talk on the VIX.

You need your head read if you just bought stocks with other peoples money yesterday. If you work on the Old Wall you don’t really have any risk until you lose your job, I guess.

For the rest of us running our own money, just look at Implied Volatility yesterday.

We got literally the layup of all layups on the short side.

The implied volatility discount was -45% which is the lowest implied vol discount we’ve seen throughout this crash.

This IS a crash, and for those of you who want to make money on the crash, you would've taken this opportunity to short Tech at -46%. Even REITs were at an implied vol discount of -54%.

So again, I’ve tried to tell all you new subscribers. Yes, you could buy something like REITS in Quad 4 IF the volatility is in the right spot. You absolutely would NOT if you go deep into Quad 4 and are heading deep into a recession and have implied volatility like that.

You could easily see the VIX go all the way into the high 70’s here.

Anybody who just looks at “charts” should understand that.

McCullough: "You Need Your Head Read If You Bought Stocks Yesterday" - 4 1 2020 12 03 15 PM