POSITION: Long Utilities
There’s a twisted message in the FOMC statement in that it’s very bullish for the US Dollar. Bernanke is done. He’s in a box and can’t do a whole heck of a lot more to debauch the Dollar anymore. What’s good for the US Dollar is good for Americans (not Oil or Energy stocks).
Here are the lines that matter across durations in our risk management model:
- Long-term TAIL resistance = 1266
- Immediate-term TRADE resistance = 1229
- Immediate-term TRADE support = 1182
In other words, despite today’s twisting, the SP500 remains bullish TRADE and bearish TAIL. No change day-over-day or week-over-week. If 1182 breaks, that will change – and that’s when you want to get back in the saddle on the short side more aggressively again. Not yet.
Waiting and watching,
Keith R. McCullough
Chief Executive Officer