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

Yesterday was a great example of where being long “the market” (which means absolutely nothing to me, unless defined from a Global Macro perspective) got crushed by being long and short the right components of major markets.

If all you were looking at was the US Equity market (please don’t!):

A) NASDAQ +1% to an all-time closing high vs.
B) Russell 2000 down -1% to -18% from its Cycle high

That made complete sense as the NASDAQ and/or Secular Growth is a long during #Quad3 Stagflation whereas Small Cap, as a Factor Exposure, is an underweight or short.

CHART OF THE DAY: What Happens When Consensus Chases Linear Recovery Expectations - Chart of the Day