POSITION: Long Healthcare (XLV), Long Consumer Discretionary (XLY)
Recognizing the 1232 TRADE break yesterday was important. That’s now immediate-term TRADE resistance. Trying to find another immediate-term trading low is not as easy as it was when holding 1232.
Across our 3 risk management durations, these are the lines that matter to me most:
- Long-term TAIL resistance = 1270 (the highs for both 2011 and Q4 likely are in)
- TRADE resistance = 1232
- TRADE support = 1212
Breaking 1212, puts 1204 in play (intermediate-term TREND support). On the way down, I want to be buying US Consumption stocks as that’s where you’ll get paid with a Strong Dollar – a less levered and less cyclical America.
With the SP500 down for both November and December, versus late October expectations this is a Bad Santa if I have ever seen one.
Keith R. McCullough
Chief Executive Officer