Below is a brief excerpt transcribed from Friday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.
President "Pump" tried the oil market. We don’t want to talk about that, because that was not tremendous. It was a terrible job. You should fire him for that. And now we got Oil down -8% this morning.
Oil has been making new lows. That is the primary view we have on deflation in Deep Quad 4. You can see on the Oil chart that it’s DEEP.
What you’ll notice yesterday into the hope of it all, is that people are going back to buying the bubble. But they're not buying Financials (XLF) or Energy (XLE) stocks. This creates a widening divergence and this is quite typical.
Back in 2000 when you had your first step down from the top, at every single pop people buy fewer and fewer of the former bubble stocks until they’re all shot for dead.
Understand that while you’re panting and having FOMO, we’re not going back to the all time bubble highs.
You’ll end up in a place where you make just another lower high.
