In this morning’s edition of The Macro Show, Hedgeye CEO Keith McCullough hits on the three most important market moves from Monday, July 20th and what it means relative to Hedgeye’s positioning over multiple durations.

“We have had spikes in Oil volatility, but they’ve been episodic-and-non-trending. What has been TRENDing is the breakdown in the Small Cap factor exposure, as it should if the market is Phase Transitioning out of #Quad2 and into #Quad3 (or #Quad4),” explains McCullough, as he jumps into Hedgeye’s outlook on Europe and Japan.

"When you invest, you should be thinking about the 3 regimes of volatility within the Quad. We're in the wrong regime for Small Caps... that -10% $IWM drop didn't come out of nowhere."

Keith McCullough’s Reaction To Monday’s Moves & Current Market Outlook - early look