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

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.