McCullough: Pay Close Attention To Oil

10/15/20 03:07PM EDT

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

McCullough: Pay Close Attention To Oil - 10 15 2020 12 43 11 PM

Let’s talk about Oil.

It has had multiple attempts to get up. Yet, it can’t even get to 41 never mind 42 on WTI! 42 is Trend duration and 39.5 is Trade duration.

If it blows through 39.5 today, say hello to the probability of 37 in WTI with an even more pronounced rising probability of #Quad 4 in Q4.

That is what the market is telling you today.

When you see Quad 4, what happens? You get Dollar up, Commodities down, Gold down. Take a look at the inverse correlation at -0.87!

That’s right folks, -0.87 is the number on an inverse correlation for both S&P and Gold.

Pay attention to these things. Being diligent when observing inverse correlations helps make you money.

McCullough: Pay Close Attention To Oil - 10 15 2020 12 42 24 PM

© 2021 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.