Net Long: SP500 Levels, Refreshed

05/25/12 11:40AM EDT

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: 

  1. Intermediate-term TREND resistance = 1369
  2. Immediate-term TRADE resistance = 1336
  3. 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,

KM

Keith R. McCullough
Chief Executive Officer

Net Long: SP500 Levels, Refreshed - SPX

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.