Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
While some may “feel” like being long a #Quad2 Asset Allocation in the USA, that stopped working in JUN. What’s started to work in SEP is long a #Quad4 portfolio as #InflationAccelerating gains of #Quad3 in Q3 peaked at the end of AUG alongside a falling Dollar.
Instead of making a “big call” on it definitely being #Quad4 now instead of #Quad3, all I’ve done is:
A) Taken my net LONG Tech position to zero
And a FYI...
I don’t have to know if markets are “definitely” moving to a #Quad4 in Q4 USA vs. #Quad2 in Q4 China setup either. I just have to keep moving as both the economic data and my market signaling process does into the end of Q3.