MORGAN STANLEY: The stock market just shifted by a magnitude that usually precedes recessions. Here's why it's an ominous sign once again.

Beginning last week, investors fled stocks with the strongest earnings growth for those that were considered cheap.

He described the status quo before this rotation as a"Goldilocks" scenario. The favored end of the momentum trade was comprised of stocks that promised bond-like protection and the strongest earnings growth. Meanwhile, the short-momentum trade was in companies that were cyclical in nature. This might just be the initial step in a longer downward spiral for growth stocks, and where a possible recession comes into the picture, according to Wilson.

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