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POSITION: Short SPY

Life is good. Risk management is hard.

Given the heightening probability of a US Currency Crisis (see slides and replay from our Q2 Global Macro Themes call we hosted on Friday), it shouldn’t be a conceptual surprise to see the SP500 slicing through both our immediate and intermediate-term levels of risk management support: 

  1. TRADE = 1319
  2. TREND = 1302 

As I wrote on Friday, citing Baupost’s Seth Klarman, “There’s an invisible tipping point – when we get there, it’s far too late.”

We didn’t need a ratings agency to remind us of that.

The long-term TAIL of support for the SP500 is still intact, but it’s a lot lower – down at 1186.

KM

Keith R. McCullough
Chief Executive Officer

Breakdown: SP500 Levels, Refreshed... - 1