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

Yes, let them have their fear-mongering-FOMO. Let them do what they do. They are our competition. They are the ducks.

The Cycle’s SignalsPods (rates of change of revenues and earnings growth), and Quads are what we do, together. When they decide to sell to us at the low-end of the Risk Range, we buy. When they chase at the top-end of the ranges, we sell-SOME.

But why sell-SOME? Using SPY FOMO as an example:

A) The top-end of my Risk Range is now 3911 (i.e. the best price in the history of prices you can sell-SOME at)
B) Implied Volatility in SPY has crashed from a +109% freakout PREMIUM last week to +6% vs. 30-day realized today

Again, since I am very certain that they (our competition) don’t use our Signals (i.e. Risk Ranges within the context of Vol of Vol Signals in the options market), don’t worry about them and why they do what they do. Volatility’s Smile is ours.

CHART OF THE DAY: Consensus Hedge Funds Re-Grossed - Chart of the Day