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POSITION: no positions in SPY or Sector ETFs

Since I have no idea what the next central plan is other than its to “go big” (Obama at the G20 today), I’m just going to get out of the way. While the US stock market’s intermediate-term TREND level of 1213 held this week, its longer-term TAIL level of 1267 did not. This market is in no man’s land now.

Across my risk management durations here are the lines that matter most: 

  1. TAIL resistance = 1267
  2. TRADE resistance = 1251
  3. TREND support = 1213 

The way I’ve managed risk around this is from a net exposure perspective (overall my call is to take gross exposure down). On Tuesday’s TREND line test of 1213, I moved the Hedgeye Portfolio to 9 LONGS, 5 SHORTS. As of today, I’ve tightened that back up to 7 LONGS, 7 SHORTS.

The EUR/USD is going to decide which way the SP500 trades from here. I’m watching how the Euro’s $1.36 TRADE line support holds up very closely.

KM

Keith R. McCullough
Chief Executive Officer

Bearish TAIL: SP500 Levels, Refreshed - SPX