Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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.