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

In terms of bottom-up long/short “stock picks”, I really don’t care what my analysts think about certain stocks right now until I know what I know about the volatility adjusted risk of the stock.

It’s not my research team’s first rodeo. They know that Captain Stock Splitter gets slayed on a VIX breakout > 30. They also know that I don’t know if/or when that new regime of volatility is just an episodic cluster or a new @Hedgeye TREND. 

Keep playing the volatility-adjusted hand you have, not the one you’d like to have.

 CHART OF THE DAY: Volatility Is A Leading Indicator Of Price  - Chart of the Day