McCullough: What Do Oil & The Euro Have In Common? #Quad4

10/12/20 02:15PM EDT

Below is a brief excerpt transcribed from Monday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough

McCullough: What Do Oil & The Euro Have In Common? #Quad4 - 10 12 2020 1 11 49 PM

If you're someone hoping for stimulus, Oil is not telling you what you want to hear. The signal there is all #Quad4.

Don’t forget that a lot of people want, need, and have to believe that stimulus is coming. 

I don’t need to believe anything. All I need to understand is what the Oil price is doing right now.

Last week it was up a lot, and this morning there was no follow through at a particular point that matters.

McCullough: What Do Oil & The Euro Have In Common? #Quad4 - 10 12 2020 1 55 07 PM

Oil could not get above 42. As you can see, it has been doing nothing but making lower highs. Oil is falling more than one percent this morning.

The time to be long Oil was from June until the top of green arrow on that chart (see above).

Then just like a lot of things, it started to signal a series of lower highs.

Look at the Euro in comparison.

McCullough: What Do Oil & The Euro Have In Common? #Quad4 - 10 12 2020 1 54 45 PM

Is it just me, or does this arrow look awful familiar? Isn’t it all one in the same thing? The Euro is making a series of lower highs against the Dollar.

Falling oil prices and rising dollar?

Just telling you, in case you missed it, that's #Quad4 in Q4.

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