PREMIUM INSIGHT

Editor's Note: Below is a brief excerpt from today's Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look.

A Simple Visual of the Pain Trade - 12.04.17 EL Chart

Another reality that continues to manifest in US Equity Style Factor terms is what’s called the Pain Trade:

  1. HIGH SHORT INTEREST stocks led gainers, closing up +2.9% last week
  2. HIGH BETA stocks were right behind consensus shorts at +2.6% last week
  3. SMALLER CAP stocks played catchup too, closing +2.7% last week
    *Mean performance of Top Quartile vs. Bottom Quartile, SP500 companies

This Macro Monday will indeed prove painful for anyone who shorted Friday’s Trump v. Flynn lows.

A Simple Visual of the Pain Trade - early look