POSITIONS: 10 LONSG, 9 SHORTS @Hedgeye
Today, both the fundamental research and quantitative risk management signals said the same thing – time for a breather. This is the first day in the last 7 trading days that my intraday SPY signal gave me a lower-high.
Lower-high versus the 1494 I registered on the close last night, that is. We are obviously seeing higher-lows and higher-highs across longer-term durations, and that’s bullish, until it isn’t.
Across our core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE overbought = 1485
- Immediate-term TRADE support = 1459
- Intermediate-term TREND support = 1419
In other words, overbought is as overbought does. If all the Financials act the way WFC just did on the “news”, I’ll be surprised; especially if we go into the prints from a lower price. But then again, everyone else would probably be surprised too.
Keep moving out there,
Keith R. McCullough
Chief Executive Officer