Ladies & Gentlemen of ZH, introducing Keith Mccullough:
As you may recall, P.T. Barnum was an entertainer & master showman - you paid your hard earned money to him, and in turn you expected to be entertained. Enter Keith Mccullough. Keith is here to fill the void left by P.T. For $29.95 /mo, you too can be entertained.
Keith is the head tweeter CEO of hedgeye, an "investment adviser". The firm of course has no actual AUM, they tell other people what to do with other people's money. In summary, they're twice removed from your money.
What's nice about being twice removed from other people's hard earned money is that it doesn't sting as much when they lose it. You see, ever since the Bernank committed to $85bn / mo last year, Keith has been urging everyone to jump into the equity pool head first into the deep end, forget the swimmies. Admittedly, Keith has been correct about the market since that time. However, the day trading momentum chasing strategy he advises is masked with a "macro" / "fundamentals" theme. He claims the use of complex statistical models, and that he has oodles of analysts burning the midnight oil reading 10Q's and obscure reasearch - blah blah blah. Everyone who is paying attention knows that this entire ride is a momentum play, driven by Fed flow. That's the cold hard truth, no matter how it's spun. Unfortunately what people forget, is that you only profit when you cash out. This is how people get hurt.
He claims to be "new wall street", but he's the same as what he categorizes as the "old wall street". Swindle people out of their hard earned money as fast as you can while the momentum is in your favor, and when the market & sentiment turns on a dime, say "there's no way anyone could have seen that coming". No matter what spin is put on the strategy he (and most others) employs, this is the cold hard truth. It's always about having an escape route, and hoping that you can get out before the other guy. Of course, there's not really anything for them to get out of technically, as that would imply they have direct AUM, but you get the point.
If you follow him on twitter, you know that he's not only incredibly corny, but also takes arrogant to a level that's actually impressive. You also know that he retweets anyone with a pseudonym handle if they stroke him, and attacks anyone with a pseudonym handle if they question some of his comments. It's a nice way to deflect and avoid answering the actual question, or avoid engaging in a conversation with someone who has an opposite view. Sadly, Keith has a problem with focusing on the message that is being delivered, and instead wants to focus on the person. That's like, so old wall. Engaging in conversation with a pseudonym would of course mean he'd actually have to back up what he's spewing, which is hard to do when all he's really doing is saying be long the momentum, hence the Fed. This actually is quite comical, considering he apparently prides himself on "transparency" and "accountability" (where have we heard that before... hmm).
At any rate, for your viewing pleasure, below are some excerpts from Mr. Barnum himself (@keithmccullough), as well as a few counter points (not sure what I'm countering, as it's hard to counter a momentum argument derived from Fed actions).
Today, when the market actually threatened to expose the house of cards it is being built with (think Nikkei), his "tweet show" was eerily silent. Alas, when RC LLC engaged in the market, he was free to jawbone once again. Not missing an opportunity to tell you, dear reader, that what he was doing this whole time was not chewing his finger nails, but emailing clients to get super long!
Here is Mr. Barnum employing the deflect & attack method instead of engaging in a discussion:
Here are examples of his infamous timestamp he so boldly claims - uh, missing the specific ticker & currency aren't we Clark?
Here is how macro conditions and long term valuations change within minutes!
Keith constantly tweets that growth is accelerating, without really giving any firm data sans the occasional consumer sentiment & non-mfg ISM. Tis the momentum trader wearing macro clothing's dilemma.
Here is some data he may want to peruse.
Trying to intimidate people into shutting up isn't a good idea Keith, and unlike CNBC, you've got no friends on the receiving end of tweets & emails here at ZH to complain to when waters get too rough.