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.
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.
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. 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).