POSITIONS: Shorting Basic Materials (XLB) and Russell (IWM)
Signals are signals. So is political noise. If you don’t think there was any irony in the US employment rate dropping to the precise rate when Obama took office (7.8%), I’ll take the other side of that trade.
I’ll also take the other side of the bullish call I made around this time yesterday. Romney Rally becomes Obama Rally (look at Intrade) – and we know what that means for our hard earned currency (US Dollar Debauchery) and commodity inflation.
The economy is not the stock market. Sometime in October though, I think they will collide.
Across risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE overbought = 1468
- Immediate-term TRADE support = 1448
- Intermediate-term TREND support = 1419
In other words, overbought is as overbought does, so I hit the button. It’s not political. Neither is my process. The title of this note just is.
Get ready for #EarningsSlowing season next week and enjoy the weekend,
Keith R. McCullough
Chief Executive Officer