Zero-day options now dominate trading — and they've doubled in the last year. That concentration changes how the market moves.
Here's why: Wall Street's options dealers have to constantly buy and sell to manage their own risk. On calm days, that trading quietly holds the market in place. But when a real downturn hits, the same trading flips — accelerating the fall instead of cushioning it.
That's why Keith McCullough warns the next crash will be "beyond epic." It will happen faster than investors can react and protect their portfolios.
The Market that Rallied Through the First Half of 2026 Is Showing Cracks.
Oil crashed more than 20% from its March highs. Bitcoin fell 30% on the year. Megacap tech became more volatile.
When economic growth and inflation both start slowing simultaneously, market risk is highest. Hedgeye calls it Quad 4. It's the environment where crashes happen — 2008, 2020, 2022, and 2025 were all Quad 4 events.
The probability of Quad 4 is rising. Most portfolios aren't built for it.
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"I run a $1B hedge fund and rely on Keith's research every day. No one works harder to help investors compete against the Wall Street machine."
— Dan Rasmussen, Portfolio Manager & Founder, Verdad Capital
“I have no idea where I'm going, but I know exactly how to get there.”
That's how Keith McCullough describes his investing process. Not a prediction machine. Not a crystal ball. A repeatable, math-based framework.
It tracks the rate of change of inflation and economic growth to tell you which assets are probable to win or lose.
When the math changes, the positioning changes with it.
The Track Record: Why Hedge Fund Managers and Self-Directed Investors Trust the Process
- 2008: Told subscribers to move to 85% cash. The S&P lost 46%.
- 2020: Exited risk assets two months before the COVID crash.
- 2022: Said avoid tech, buy gold. The Nasdaq dropped 33%.
- 2025: Called the selloff. Then called the rally.
"The information Keith shares is directly responsible for me being able to save my retirement from the downturn in the market. I can't afford not to be a subscriber." — Charles Bradley
"Turn off CNBC, and subscribe to Hedgeye." — Matthew Mosseau
See the Process in Action — Every Morning at 9AM ET
Every weekday, Keith McCullough goes live on The Macro Show — walking through exactly what the inflation and growth data is showing, how he's positioned, and what it means for your portfolio.
No narratives. No Wall Street spin. Just the process that's called every U.S. market crash since 2008.
The Fed Won't Come to the Rescue. Investors Need to Reposition Portfolios.
Not all assets underperform in Quad 4. Some are built for it.
Gold tends to outperform when economic growth slows. The U.S. dollar tends to strengthen as investors seek safety. Certain equity sectors — Utilities, REITs, and Health Care — often hold up better than the broader market.
Tech and Industrials have taken the biggest losses.
This isn't just theory. It's backed by decades of market data and confirmed by the same process that called every U.S. crash since 2008.
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0DTE Options Risk:
Former Hedge Fund Manager Warns the Next U.S. Market Crash Will Be "Beyond Epic"
Keith McCullough has called every U.S. crash since 2008 by tracking the rate of change of inflation and economic growth.
Keith McCullough has called every U.S. crash since 2008 by tracking inflation and economic growth.
Former Hedge Fund Manager Warns the Next U.S. Market Crash Will Be "Beyond Epic"
0DTE Options Risk: