POSITION: Long Consumption, Short Commodities
Adding to our long Consumption theme (SBUX, NKE, FDX, etc) we bought YUM on red today. I also just covered my OIL and Energy (XLE) shorts, and shorted Bonds (TLT). SP500 TREND support of 1419 holding is the primary reason for those risk management decisions.
Across our core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE resistance = 1450
- Intermediate-term TREND support = 1419
- Long-term TAIL support = 1370
With the VIX raging to immediate-term TRADE overbought here and Bonds not signaling any change in the fundamental shift we’re seeing in Global Growth (stabilizing, not slowing), 1419 holding makes sense to me.
If it snaps, I guess I’ll have to think about changing my mind.
Keith R. McCullough
Chief Executive Officer