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Below is a brief excerpt transcribed from Wednesday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough |
Lets talk about divergences.
Divergences are developing and creating opportunities to generate more and more alpha. You know what alpha is? It’s when things that you are long of go up and things that you are short of go down.
Look at Singapore down -1.5% this morning .
Everyone know what's going up? We’ve signaled long Taiwan and Indonesia. They’re both up overnight and signaling immediate-term trade overbought, so sell some of that while staying with the things on the short side that are working.
It’s not just Singapore against Indonesia/Taiwan, there's also alpha to be generated in Europe.
Spain in the last month alone is down over -2.3% versus something like Finland. Look at the 1-month returns of Finland and Norway. They're both up +4.1% and +3.5% respectively.
Realize that there is a game within the game. You are hopefully getting smarter and more aware of the global macro landscape. You don’t just have to buy the Dow in points.
You are learning something here that is quite valuable and can make money in a lot of different ways.
The best way to make money is look for opportunities where other people aren’t.
