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Below is a brief excerpt transcribed from Monday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough |
Lets take a look at the Global Equity rally this morning!
When you get an oversold signal you have to know what to do.
It’s one thing to be oversold SPY’s and QQQ's. It’s an entirely different thing to be oversold SPY’s, QQQ’s, the Russell 2000, and all of the Global Equity Indices (which last week included all of Europe).
Don’t forget that last week the French stock market was down -5% on the week. Back French stocks were down about -5.5% to 6% on the week it was oversold intra-day.
France and Germany were both oversold.
Taiwan was oversold on the Asian side along with Hong Kong as well. Look at the bounce on the chart below!
A little 1% bounce. It goes down five and then up one. That is why today when you get towards the top end of the risk range in something like S&P 500 beta, you’d be selling.
You have to be able to buy on oversold signals so you can sell when it's overbought.
If you want to chase FOMO or have your portfolio to be driven by your own political polarization, you can do that.
Just remember it has nothing to do with our process.
