Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
|Chinese Yuan was down -0.2% vs. USD last week, taking its 3-month loss to -2.0% = Bearish TREND @Hedgeye.
When you read this pattern within the interconnected Global FX pattern, what do you see? Let’s start with what you shouldn’t see – and that’s the US Dollar Index “breaking its 200 day” moving monkey!
Notwithstanding that it’s actually the Trade Weighted Dollar that matters most to our Global Quad Model (because the Bearish @Hedgeye TREND Chinese Yuan is in that), my @Hedgeye TREND support level for the USD Index = 97.74.
Instead of having FOMO about immediate-term moving monkeys, I think you’ll enjoy your Full Cycle Investing life much more if you continue to see The Quad patterns within @Hedgeye TRENDs. That’s how you win the longer-term macro market game of chess.