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Below is a brief excerpt transcribed from Thursday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.

McCullough: Russell 2000 Is One Of My Top 3 Shorts - 4 30 2020 12 41 22 PM

Let’s discuss the Russell.

The Russell had a 10% 3 day move.

First of all, that’s a huge move. Second of all, that takes the Russell 2000's drawdown to -21.8% from its 2018 peak where we went bearish.

That’s the whole thing about bear markets. They bounce. They bounce a lot more than 10% by the way. I don’t think it’s going to go up 10% from here or I wouldn’t have shorted more yesterday. When something is still down 22%, it's decisively in a bearish trend.

Now from an immediate-term trade perspective, I got the latest move wrong shorting the Russell 2000. I had the 10 prior trades in the Russell right. But, as with this latest one, I'm responsible for all of my own mistakes.

The key point this morning is: What are you going to do today in the Russell?

If I look at my immediate-term Risk Range, the Russell has 16.2% downside today and just 2% upside. So for my money, I’m short the Russell. That remains one of my top three shorts.