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

Other than Deep #Quad4 Deflation, what is this signal (amidst the growing Fed FOMO) telling us?

A) If you haven’t been long the Long Bond since Q4 of 2018, the best “entry” price is going to be 0.68% on 10s…
B) Treasury Bond Market Volatility (the MOVE index) has collapsed to 58 this morning, and nothing…
C) Perpetuates a longer-term bull market in anything more than FALLING volatility within the right REGIME of volatility

Despite the uniquely 2019-2020 American pastime of chasing short-term US Equity Futures FOMO yesterday, both the TLT and EDV (Extended Duration Treasury ETF) were up over +1% on the day vs. the beloved SPY which turn-tailed (again) and lost -0.5%.

Since the SP500 is cap weighted, what drove that yesterday were big Sector Style declines in Mo:

A) Healthcare (XLV) which was -2.0% on the day
B) Communications (XLC) which were -1.8% on the day
C) Tech (XLK) which was -1.3% on the day

That ABC = Mo (Momentum), as a Factor Exposure. Meanwhile “Value” continued with its Counter @Hedgeye TREND bounce (led by the Financials and Energy Stocks, which are clearly defined as value, because they’ve been the worst places to be in 2020).

CHART OF THE DAY: Look At The Real Bull Markets  - Real Bull Markets