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

#NazVol there’s an obvious reason why the only US Equity Index and/or Sector ETF I am long (Utilities, XLU) in size isn’t something with a Volatility of 40 like NASDAQ’s Volatility is! Before you sell AFTER another -10% drawdown, remember that it would be really hard for #NazVol to sustain a move > 45 – this morning should be short-term capitulation

 “Short-term capitulation” means that many people who didn’t take their GROSS LONG EXPOSURE to The Bubble down since The Bubble peaked in AUG 2020 will be selling lower this morning.

Buying Asset Classes (like Commodities, Emerging Markets, etc.) that are inversely correlated to the US Dollar continues to make sense during #Quad3 (which has a probability of 49.5% vs. 45.4% for #Quad4 in the USA this AM)…

CHART OF THE DAY: Pricing In Quad 3 vs. Quad 4  - Chart of the Day