POSITIONS: Long Utilities (XLU), Short Industrials (XLI) and Short Basic Materials (XLB)
Our Growth Slowing, Strong Dollar, and Bernanke’s Bubbles (short Commodities) Macro Theme calls for Q2 have not changed – consensus is starting to.
Here are the lines, across risk management durations in my model, that matter most:
- Intermediate-term TREND resistance = 1369
- Immediate-term TRADE resistance = 1316
- Immediate-term TRADE support = 1294
In other words, I expect to see The Test (as in a re-test of the YTD closing lows), then maybe I’ll get net longer from there for the bounce. We’ll see. I think being able to change your mind fast is important right now.
Almost the entire Sell-Side still needs to cut their US GDP Growth estimates, again.
Keith R. McCullough
Chief Executive Officer