POSITION: Short Consumer Staples (XLP)
So far, I’m at least a day early going back to 0% US Equity exposure. Being early is also called being wrong.
After the August-September my team has had, I’m not willing to put on the crash-helmet-risk for the sake of another immediate-term TRADE breakout in the SP500.
That doesn’t mean that we aren’t seeing a breakout above my TRADE line of 1182 by the way. It just means I’m not willing to get sucked into another month-end markup.
When I moved the Hedgeye Portfolio back to net short on August 30th (first time I’d done that since June 23rd), it was because my immediate-term TRADE range had run out of price range and the end of the month had run out of time. Time and Price is what I do. There’s still room here.
Today, provided that 1182 holds, there’s still immediate-term TRADE upside to 1203. So, I wait and watch. Both the intermediate-term TREND and long-term TAIL (1266) for US Equities remain broken.
I’m in no rush to get net short, yet.
Keith R. McCullough
Chief Executive Officer