CHART OF THE DAY: A|B Testing Process → Quantify Investor Consensus

02/24/21 07:46AM EST

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

What “I really like” has zero to do with an opinion like “valuation”, btw. It has everything to do with what The Machine likes based on A) my Signals and B) the economic Quad perpetuating those Signals.

Top down, what I really like, wasn’t for sale for long yesterday anyway!

A) SMALL CAP, as a Factor Exposure, was +0.6% on the day taking its 1-month return to  +4.4%
B) HIGH BETA, as a Factor Exposure, was +0.7% on the day taking its 1-month return to +9.0%
C) Energy Stocks (XLE), as a Sector Style, were up another +1.7% on the day to +23.5% for FEB alone!

Interestingly, what I don’t like is still widely held (and for sale):

A) LARGE CAP, as a Factor Exposure, was +0.1% on the day taking its 1-month return to  +2.0%
B) LOW BETA, as a Factor Exposure, was -0.2% on the day taking its 1-month return to  +1.6%
C) Consumer Discretionary (XLY), as a Sector Style, was -0.7% on the day to +1.8% for FEB to-date

CHART OF THE DAY: A|B Testing Process → Quantify Investor Consensus  - 10

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