POSITIONS: Short Industrials (XLI) and Energy (XLE)
So the SP500 went up 41 handles in less than 2.5 hours of trading, and everyone nailed both sides, right?
This is obviously getting out of control, and anyone who doesn’t realize that probably didn’t in Q3 of 2008 either. No, this is not 2008. This is 2012, and Q3 starts Monday.
Across my core risk management durations, here are the lines that matter most:
- Intermediate-term TREND resistance = 1366
- Immediate-term TRADE resistance = 1359
- Immediate-term TRADE support = 1335
In other words, what was a hyper short-term TRADE line of resistance (1335) is now support, and I fully expect to test this 1 wall of resistance. When/if the market fails at the wall, the central planners are going to need another central plan.
Maybe today is a fun one for politicians. That’s just great, for them. Their behavioral similarities to 2008 are mounting, by the week.
Enjoy your weekend,
Keith R. McCullough
Chief Executive Officer