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Below is a brief excerpt transcribed from Thursday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough. |
You need to focus on the volatility of the NASDAQ. If you are still one of those people who look at the surface area of price, that’s a little silly.
No need to look at simple moving monkeys. Here at Hedgeye we focus on the volatility of volatility.
That has predictive value on the next move in price. The surface area of the price is the last to cave in.
Yesterday (and not sneakily either) the market was broadly racing higher on decelerating volume, as it was down another -2% versus the prior day.
The last 2 days volume went down, whereas on the big down day on Monday the volume went straight up.
At Hedgeye, we’re looking at price, volume, and volatility. It is a three -factor model.
Yes it’s mine. Yes I’m proud of it. Yes it works.
If you look at what was happening yesterday on down volume as the market was trying to break out above its S&P 500 June 8th levels, it didn’t really work. The NASDAQ Volatility Index stayed bullish trend which is still a gnarly signal last I checked.
