POSITIONS: Long Utilities (XLU), Short Industrials (XLI)
I think it’s safe to say that consensus now agrees with Hedgeye on Growth Slowing. Now we have to deal with cleaning up their mess. Alongside immediate-term capitulation, we’re finally seeing a Short Covering Opportunity.
Across our core risk management durations, here are the lines that matter to me most:
- Intermediate-term TREND resistance = 1369
- Immediate-term TRADE resistance = 1315
- Long-term TAIL support = 1283
In other words, we’re right there – right on the TAIL line. And I am making my call to start covering your shorts. Our gross long exposure to this market remains very low.
Keith R. McCullough
Chief Executive Officer