Below is a brief excerpt transcribed from Wednesday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.
I’m pretty sure this is the 1-factor model that’s driving The Machine. It’s not just the FOMO.
It’s the Dollar Down.
I know everyone at home in a "Robinhoodie" account trades on a 1-day duration, but the 15-day inverse correlation between the dollar and the S&P 500 is super short term.
Still, the inverse correlation is -92%. That’s wicked high! At 92% everybody is a winner if the dollar keeps going down. However, we’ll have to see if this continues.
If it continues, the S&P 500 is bullish trend.
If it doesn’t continue, that’s the other thing.
