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Below is a brief excerpt transcribed from Monday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough |
I’ve said it a million times. You get the U.S. Dollar right, and you’ll get a lot of other things right.
Whether you like it or not, I quickly move on positions. You need to realize that it doesn’t matter. What really matters is what the market is actually doing.
The market is doing precisely what I thought it would do. After the Dollar signaled it was immediate term trade over bought on Thursday, you could have covered your Euro short there. You also should have bought stocks, including global stocks like Taiwan (EWJ) and Japan (EWT).
The dollar is down a half a percent against the Euro this morning, and you should know that the Euro could easily get back to the top end of its range.
Stimulus or not, I can reverse the position. Imagine that!
I rode for three days the opposite trend I had to the three days prior.
Can you do that? It took me a long time to do learn that, and I don’t nail every single one. I just incidentally nailed this one.
But that’s not the point. It's not about always “nailing it.”
It is really about learning the ability to change your position relative to a short-term basis or less.
