POSITIONS: Long Utilities (XLU), Short Industrials (XLI)
With the SP500 under my long-term TAIL line of support, this market is in No Man’s Land right now.
There’s a big difference between trading the short side of your book aggressively (Short Covering Opportunities) and ramping up gross long exposure when we are immediate-term TRADE oversold.
Across all 3 of my core risk management durations, here are the lines that matter most:
- Intermediate-term TREND resistance = 1369
- Immediate-term TRADE resistance = 1308
- Long-term TAIL resistance = 1283
In other words, I am in no hurry to buy/cover (unless I get an immediate-term TRADE oversold signal at the security level) and won’t be provided that 1283 is confirmed as resistance.
There’s immediate-term TRADE support (oversold) at 1268.
Keith R. McCullough
Chief Executive Officer