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

You see, some people (chasing their bench) had to buy Tech at a big lower-high yesterday because, clearly, Tech Earnings are off to a “great start” relative to “best in breed” bank earnings like Jamie Dimon’s.

The thing about Jamie’s numbers is that he didn’t take nearly enough loan loss reserves relative to the economic reality we face. He knows that. He also knows he needs a new narrative. And that’s that “we need to bailout” his levered clients, or he’ll have to report that reality in Q2.

While The Cycle was #slowing (from Q4 of 2018 until the virus shocked it to slow at a faster pace in Q1 of 2020) I heard a lot about the US economy being in “great shape.” Reality is that it was in pro-cyclically levered shape. That’s not American excellence – neither is bailing it out.

CHART OF THE DAY: Investors Looking For Fed Bailout? Need More #Cowbell - Poor Late Cycle Capital Allocation Decisions