McCullough: BIG Move to the Upside in China → Follow the Signal

02/10/21 11:20AM EST

Below is a brief excerpt transcribed from Wednesday's edition of The Macro Show hosted by CEO Keith McCullough and Director of Research Daryl Jones.

McCullough: BIG Move to the Upside in China → Follow the Signal - one2.10

CHINA! Two-day move, WHAMO!

Just straight to the upside; you got a +3.4% two-day move. So instead of making lower-highs, it’s making higher-highs.

McCullough: BIG Move to the Upside in China → Follow the Signal - china2.10

As a friendly reminder, if you go back to where that red arrow started, that’s where the Quad 4'ing of it all happened last year. That came and went, then where that green arrow starts back in June, Hedgeye Nation went bullish on Commodities, EM, China, etc.

McCullough: BIG Move to the Upside in China → Follow the Signal - sscomp2.10

So a huge return; there have been plenty of head fakes and opportunities to get off the bus.

If you knew that the China CPI number was going to be “weaker” overnight and you sold Chinese stocks short ahead of that, you would’ve got your face ripped off.

So be careful, understand that the signal matters more than anything else.

© 2024 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.