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

If you’d like to diversify your short-selling basket into other widely held baskets of “secular growers” that are currently Cyclical Slowers, Adobe (ADBE) is the top weight in what still looks like a Software Bubble basket of stocks to me (IGV).

If you’d like to double-dip and short widely held Microsoft (MSFT), which is the #2 holding in the IGV basket, you can re-short the Tech (XLK) ETF today which has a 20% holding in the most widely owned stock in human history, Apple (AAPL).

“Great companies” some of these are, indeed. But it’s not a great time to be complacent or emotional about holding them. Selling what everyone still owns is a bear market strategy. Implied Volatility on XLK is trading at a -35% DISCOUNT to 30-day realized this morning. That’s a SELL signal.

CHART OF THE DAY: When Secular Growers Become Cyclical Slowers - Cyclical Slowers