McCullough: Overbought Signals → Sell SOME

03/11/21 09:37AM EST

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

McCullough: Overbought Signals → Sell SOME - SNAG 0108

OVERBOUGHTS. Now let's go through these; there's a bunch of them.

Let's start in Asia - our favorite Emerging Market and really favorite Eastern exposure on the equity side has been India (INDA), and that's overbought.

That was a wonderful run, and what you'll find, whether it be India (INDA), Taiwan (EWT), Singapore (EWS), or Germany (DAX) for that matter; we did not get any selling recently.

McCullough: Overbought Signals → Sell SOME - SNAG 0109

Last week was a minor correction; in fact most European indices were up last week with the NASDAQ down.

This was a uniquely American issue - and it's still an issue.

Again, Americans own the same bloody stocks; they don't own the $DAX, or $EWS, and they certainly don't own $INDA.

So that's why we made money on those, and why we have a diversified full investing cycle portfolio. When we get to the top end of the Risk Range, it's overbought, so you sell SOME. 25-50 basis points.

That's the way we think about things - incrementally.

© 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.