POSITIONS: Short Industrials (XLI)
Maybe I could have risk managed it better, maybe I couldn’t have. Everything becomes clearer in hindsight. The only thing I can continue to do is learn from my mistakes.
We didn’t make any mistakes on both how early and consistent we’ve been on #GrowthSlowing. That, I guess, is now the bull case. The faster GDP growth slows, the louder the #BailoutBull gets. So, you could have been bullish on growth then (Q1), and bailouts now (Q3) – bottom line is that perma bulls are always bullish, regardless of their mistakes.
Across our risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE resistance = 1392
- Intermediate-term TREND support = 1376
- Immediate-term TRADE support = 1363
In other words, we can all pretend everything will end just fine, until 1376 snaps again. If it doesn’t, I guess we are going to suspend economic gravity and fly to the moon.
Just not sure how we get down once we get there,
Keith R. McCullough
Chief Executive Officer