POSITIONS: Long Healthcare (XLV), Short Industrials (XLI) and Basic Materials (XLB)
On red this morning, I moved the Hedgeye Portfolio to 9 LONGS, 4 SHORTS. Since the intermediate-term TREND remains bearish, that’s the best I can do here – get net long by managing my short book up/down aggressively.
Across risk management durations, here are the lines that matter to me most:
- Intermediate-term TREND resistance = 1369
- Immediate-term TRADE resistance = 1336
- Immediate-term TRADE support = 1316
That 1316 line is a stealth line of support (yesterday it was resistance). That’s going to be my line in the sand right now in determining my net exposure. Seems simple, because it is – I like to be able to make decisions that are process based. It’s just math.
I’ll either tighten up my net exposure closer to 1336 (overbought), or do so on a break below 1316.
For now, I wait and watch.
Enjoy your weekend,
Keith R. McCullough
Chief Executive Officer