Buying/Covering: SP500 Levels Into The Close...

Today feels like we’re playing that game where we have the banker sitting on the stool of the dunk tank. Lift him up, then drop him… lift him up, then drop him… and all the while Bloomberg TV is talking about ways to play the “double and triple down” financials ETFs… the groupthink that’s taken hold of this market is borderline sad.

While it may be their goal to entertain, this is not a circus… and shooting fish in a barrel on the short side is not going to last forever. Below I have outlined the possible depth of the water that remains in that proverbial dunk tank (shaded green like the oceans that Allen Stanford is probably sailing on right about now) in the 752-790 range.

If you can’t be buying and covering in this SP500 range, you probably think the apocalypse cometh – good luck with that – that’s not the unique thought that it was 12 months ago.

I have invested another 9% of the Cash I was holding in the Asset Allocation Model, dropping Cash down to 58% of the Model Portfolio.

Buy low… for the immediate term Trade up to the dotted red line at SP500 831.

Keith R. McCullough
CEO & Chief Investment Officer