• Investing Insights & Exclusive Offers → Get Our FREE “Market Brief”
    Sign-up for our free weekly newsletter. Get unparalleled investing insights and exclusive Summer Sale discounts on Hedgeye research.

    Disclaimer: By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. Use of Hedgeye and any other products available through hedgeye.com are subject to our Terms Of Service and Privacy Policy

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