POSITIONS: Short Industrials (XLI)
Bernanke did not deliver on what some conflicted and compromised people were begging for, so the USD rallied from this morning’s lows and Gold sold off. Stocks are well off their highs, making lower-highs, again – and that’s not good.
Across my risk management durations, here are the lines that matter to me most:
- Intermediate-term TREND resistance = 1369
- Immediate-term TRADE resistance = 1332
- Long-term TAIL support = 1283
In other words, we’re a long way from 1283 – and the bigger question now is does that line hold?
I do not know, but we did sell into this hopeful move.
Hope is not a risk management process.
Keith R. McCullough
Chief Executive Officer