POSITION: No Position SPY
La Bernank just back-pedaled on QG3, so the market sells Euros and buys US Dollars on that. The rest of what we call The Correlation Trade also loses its bid. Get the US Dollar right; and you’ll get a lot of other things right.
From a TRADE, TREND, and TAIL perspective, here’s the risk management range:
- TRADE: support = 1306; resistance 1332
- TREND: support = 1319, continues to be challenged based on what the USD does
- TAIL: support = 1241; resistance = 1377
So that’s it. Be a Risk Ranger (our Q3 Macro Theme that we’ll launch at 11AM EST) and proactively manage risk around the range of price volatility that the Chairman of the Fiat Fools confuses as “price stability.”
KM
Keith R. McCullough
Chief Executive Officer
