POSITION: Long Consumer Discretionary (XLY), Short Consumer Staples (XLP)
After a 30 handle drop in the SP500, I’m booking it.
That doesn’t mean I’m bullish. It doesn’t mean I’m bearish. It doesn’t mean I can’t re-short it either. It just means that we’re holding my most immediate-term TRADE line of support at 1217.
Across our 3 risk management durations, here are the lines that matter most:
- TAIL = 1266
- TREND = 1254
- TRADE = 1217
So the intermediate-to-long-term picture still supports selling all rallies that extend themselves toward 1. And, until the immediate-term TRADE is no longer bullish (1217 support), I’ll respect whatever it is that the market sees coming next. As the Keynesian central planners have proven in the last 3 weeks, anything can happen.
If 1217 snaps, there is no support to 1182. So that’s where you’ll see me get as active as I was up at 1258. I’m comfortable being neutral right here and now with 1 Sector ETF on each side.
Keith R. McCullough
Chief Executive Officer