3 Charts: Key Risk Management Call-Outs

05/13/19 01:40PM EDT

Editor's Note: Below is a brief excerpt from today's edition of Market Edges, our weekly Macro newsletter with investing implications. Click here to learn more about Market Edges.

3 Charts: Key Risk Management Call-Outs - 04.22.2019 VIX cartoon

1. BEFORE THE SELLOFF... WALL STREET COMPLACENCY

According to the CFTC's futures and options Wall Street positioning data, the 3-year high in the net SHORT VIX position (of -180,359 contracts) came in by more than 30,000 contracts during last week’s S&P 500 correction. But Wall Street remains short at -150,307 contracts.

3 Charts: Key Risk Management Call-Outs - VIX

2. ARE YOU LONG TREASURIES?

LONG TREASURIES (one of our favorite asset allocations since October 2018) still nowhere near a net LONG consensus. Wall Street remains short across the Treasury curve.

3 Charts: Key Risk Management Call-Outs - cftc 1

3. INSIDE STYLE FACTORS

HIGH BETA and SMALL CAP (Shorts in Quad 3) have Bearish 1-week and 1-month momentum now. High Beta stocks fell -3.7% last week and are down -3.9% in the past month versus Low Beta stocks down -0.5% (last week) and -0.1% (in the last month). Meanwhile, Small Caps are down -2.7% in the past week and -4.6% in the past month. Large Cap stocks are down -1.8% (last week) and -0.6% (last month).

3 Charts: Key Risk Management Call-Outs - style factors

3 Charts: Key Risk Management Call-Outs - market edges

© 2019 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.