POSITIONS: Long Utilities (XLU), Short Industrials (XLI)
Less than 3 trading days ago (after 6 consecutive down days), no one wanted to buyem. Now +2.3% higher, no one wants to sellem.
Across my core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE resistance = 1466 (lower-high vs Bernanke Top SEP14)
- Intermediate-term TREND support = 1419
In other words, the risk range is widening – and that’s not a good thing, particularly if the VIX holds 14 for the umpteenth time in the last 5 years. If you ask anyone who is long Tech how the market feels (-3% for OCT), they see the risk more clearly.
Risk tends to be more clear in the rear-view,
Keith R. McCullough
Chief Executive Officer