CHART OF THE DAY: #Quad4 --> Were You Prepared?

10/25/18 07:40AM EDT

Editor's Note: Below is a chart (and excerpt) from today's Early Look written by CEO Keith McCullough

For those who weren’t positioned for it, this is going to be hard to read, but from a Quad 4 LONG positioning perspective, yesterday was one of the best relative and absolute performance days of 2018: 

  1. Long US Dollar = up day
  2. Long Short-term Treasuries = up day
  3. Long Long-term Treasuries = up day
  4. Long Utilities (XLU) = up day
  5. Long Consumer Staples (XLP) = up day
  6. Long REITs (XLRE) = up day 

On the SHORT side, Quad 4 really worked well too: 

  1. Short Momentum = up day
  2. Short High Beta = up day
  3. Short Tech (XLK) = up day
  4. Short Semis (SMH) = even bigger up day
  5. Short Communications (XLC) = up day
  6. Short Russell Growth (IWO) = up day 

As you can see from slide 70 of our Q4 Macro Themes deck (presented 1-month ago), this is the Style Factor Exposure setup your portfolios should have right now. That won’t change because of yesterday. Your gross and net positioning should. 

CHART OF THE DAY: #Quad4 --> Were You Prepared? - 10.25.18 EL Chart

CHART OF THE DAY: #Quad4 --> Were You Prepared? - early look

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