Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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What’s interesting about the “stocks up, covid up” narrative is that it’s actually an accurate one IF the US economy is in #Quad3. If COVID Is #accelerating AND inflation is decelerating, at the same time, that’s #Quad4. Tech gets hammered in #Quad4. So, which one is it? I’m never sure. But I do believe that the bond market has a much better handle on this than Hoodies & Hedgies chasing call options (Hoodies) and covering their consensus net SHORT position in QQQ’s (Hedgies) from SEP’s NASDAQ lows… While speculative options activity exploded volumetrically yesterday, Total US Equity Volume #DECELERATED -15% vs. its 1-month average. Again, if you’re not just staring at the surface area of markets (Moving Monkeys of PRICE), you saw that. From a fractal dimension perspective, what I see when I see #Quad4 risk rising is clearly not what CNBC sees. Does that mean I’m 100% right? Obviously not. But when I am right, I am right for the right reasons. And consensus gets smoked. |
