POSITION: Long Consumer Discretionary (XLY), Consumer Staples (XLP), Utilities (XLU) – Short Russell 2000 (IWM)
It’s healthy to see some European and American bank stocks struggle and, at the same time, see the market succeed. It’s about time economies (and their markets) are more about economies that the compensation mechanisms of the few.
Strong/Stable US Dollar = Stronger US Consumption, Confidence, and Employment. It also Deflates The Inflation that strangled Global Growth in 1H of 2011. That’s why I was bearish then and bullish now (from a price). Inflation adjusted growth matters in real-life.
Here are the 3 lines across my risk management model’s durations that currently matter most:
- Immediate-term TRADE overbought = 1302
- Immediate-term TRADE support = 1287
- Long-term TAIL support = 1267
While plenty of pundits and their perma-bull theses have changed over the course of the last 12 months, my process has not.
Cheers to a great start to 2012,
Keith R. McCullough
Chief Executive Officer