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POSITION: Long Utilities (XLU)

It’s sad but it’s true. Provided that the SP500’s immediate-term TRADE line of 1180 holds, I need to cover some high quality short positions ahead of the next Keynesian policy idea. Gaming policy is the game. I will continue to play the game that’s in front of me.

Today I covered our short position in Industrials (XLI) so that makes me only long from a Sector Risk perspective. Across all 3 of our core risk management durations (TRADE, TREND, and TAIL), these are the lines that matter most to me now: 

  1. Long-term TAIL resistance = 1266
  2. Immediate-term TRADE resistance = 1225
  3. Immediate-term TRADE support = 1180 

Higher-lows on the immediate-term TRADE duration are bullish. Lower-highs on the long-term TAIL are bearish. I don’t need to reconcile why (Growth Slowing isn’t a new thesis) inasmuch as I need to maintain these two competing thoughts in my melon and remain actively selling high and buying low.


Keith R. McCullough
Chief Executive Officer

Higher-Lows: SP500 Levels, Refreshed - SPX