POSITIONS: Short Industrials (XLI)
Our Growth Slowing call has been consistent since March (we shorted XLI on March 12th). Our beta down-shift call from last week (100% Cash) into the Fed event was explicit.
We are in no hurry to buy stocks. That’s primarily because our immediate-term TRADE line of 1318 just snapped. That’s new as of this morning.
Across all 3 risk management durations, here are the lines that matter to me most right now:
- Intermediate-term TREND resistance = 1365
- Immediate-term TRADE resistance = 1318
- Immediate-term TRADE support = 1305
In other words, there’s no rush to jump out and “buy on valuation” because valuation is not a catalyst in a macro driven tape with Growth Slowing.
They sold this market on a good New Home Sales print this morning, which makes me feel all the more patient here.
Waiting and watching,
Keith R. McCullough
Chief Executive Officer