Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
Why did I move to net SHORT last Thursday? You already know. The bloody title of my Early Look was “Sell Signals.” And, yes, there was a minor US Equity market correction on Friday, but the real cross asset class correction came around 11AM yesterday:
There are OODA loops to risk manage, then there are those – that one was epic.
If you knew A) it was #Quad2 and B) these macro moves were probably episodic and non-TRENDING because C) they were driven by a constellation of hedge funds buying (protection) and selling (down gross exposure), you made money in that tight loop.
If you didn’t… well, you didn’t. And you should re-evaluate your decision making #process in that critical window of time.