POSITION: Long Utilities (XLU), Short Consumer Discretionary (XLY)
That beta “down-shift” from 1 was good for 30 handles, or -2.2%, in the SP500. We’ll take that – literally. At a minimum, you should be covering oversold short positions here.
Across all 3 core risk management durations in my model, here are the lines that matter most right now:
- Immediate-term TRADE resistance = 1366
- Immediate-term TRADE support = 1346
- Intermediate-term TREND support = 1283
Snapping that 1366 line yesterday is now yesterday’s risk management news.
Now we’re right at support. This is a Short Covering Opportunity.
Keith R. McCullough
Chief Executive Officer