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Technology (XLK) looks like one of the more complicated (and risky) sectors to be long right now.

As Hedgeye CEO Keith McCullough explains in this excerpt from The Macro Show, it would be dangerous to go long tech en masse as certain components of tech – specifically software (IGV) – continue to look shaky.

“The most dangerous thing about tech being [a long] in Quad 3 on the back test is that software is breaking down on trending basis with tough comps,” McCullough explains.

“Tech has done well, really since the financial crisis [of 2008] because there has been an organic story that was discounting the peak of the U.S. economic cycle and profit cycle, perpetuated by tax reform.”

Watch the clip above for more, including a deeper explanation of our Quad “road map.”

Why Tech Is a Risky Bet Right Now - the macro show