POSITIONS: Long Consumer Discretionary (XLY) and Apple (AAPL)
Our process hasn’t changed; prices have. This meltdown in Bernanke Oil Inflation Expectations is very good for US Consumption (i.e. the 71%).
Admittedly, I’m making this call for the month and quarter-end bounce from oversold lows (this is the 7th down day in the last 8 for the SP500). As we’ve just witnessed, however, 25-45 handle moves in the SP500 matter.
Across our core risk management durations, here are the lines that matter to me most here:
- Immediate-term TRADE resistance = 1458
- Immediate-term TRADE support = 1430
- Intermediate-term TREND support = 1419
That 1458 TRADE break signal we have you earlier in the week mattered as much as this 1 support zone does. If you can’t buyem here, you’re not as bullish as you thought you could be.
Keith R. McCullough
Chief Executive Officer