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    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

POSITIONS: Long Financials (XLF), Long Utilities (XLU)

Whether I like the complexion of the rally or not (inflation rising), higher-highs are bullish in the immediate-term, until they aren’t. That’s why I bought/covered this morning. That’s why I don’t have a SPY or Sector ETF short. I think I can do that again on green.

Across our core risk management durations, here are the lines that matter most to me right now: 

  1. Immediate-term TRADE overbought = 1372 (higher-high)
  2. Immediate-term TRADE support = 1358
  3. Intermediate-term TREND support = 1277 

As the SP500 held my immediate-term TRADE line of support on the open (1358), I did what Bernanke is daring me to do – chase yield. Yes, that’s scary. And yes, like in February of 2011, there are huge risks associated with buying at these prices.

For today, Dollar up, Oil down is better than the alternative.

Keep moving out there,

KM

Keith R. McCullough
Chief Executive Officer

Higher-Highs: SP500 Levels, Refreshed - SPX.02.27