POSITION: Long Utilities (XLU), Short Consumer Staples (XLP)
What felt like the best position (short beta) into Friday’s close, probably feels like the worst position right about now.
As with all things beta in a bear market, this too shall pass. Provided that the SP500 fails in the immediate-term TRADE zone of 1186-1193 that I have outlined below and, of course, that the TREND (1228) and TAIL (1266) lines of resistance remain overhead…
The bullish news is that in the immediate-term the SP500 just made a higher-low on Friday (from its Short Covering Opportunity (1099) low) of last Tuesday. For the immediate-term TRADE, I’m now using a TRADE zone of support of 1145-1167 (see chart).
The bearish news about the immediate-term is that the immediate-term is subject to change in the immediate-term.
For now, we have Squeezage.
Keith R. McCullough
Chief Executive Officer