Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

Being short SMALL CAP, as a Factor Exposure, has been awesome for the last 16 months. Last week was especially ugly for the Russell 2000:

A) Russell (IWM) was down another -2.2% last week  (vs. SPY -1.0%) and has been down in 4 of the last 5 weeks
B) Russell (IWM) is still down -4.5% from where it made its Full Investing Cycle peak back in Q3 of 2018

With Asia mostly closed overnight (Nikkei tagged for a -2% loss), US Equity Futures are down -50 plus handles here. Yes, in the very short-term, that’s freakout/panic selling. In the intermediate-term, maybe the market has it right. Quad 3 to Quad 3 isn’t good either!

CHART OF THE DAY: What About #Quad3 → #Quad3? - Chart of the Day