POSITIONS: 11 LONGS, 8 SHORTS @Hedgeye
This is what Bullish Formations do, they frustrate people inasmuch as bearish ones do.
They get overbought and they get oversold. This one was overbought, then corrected (briefly), and isn’t as overbought as it was.
Overbought doesn’t always happen at the same price. Time, Volume, and Volatility signals all matter – so does the catalyst calendar. It’s a lot, but managing beta risk isn’t for rookies either.
Across our core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE overbought = 1478
- Immediate-term TRADE support = 1466
- Intermediate-term TREND support = 1421
In other words, the Risk Range is tight – and I like it tight, because that makes our job easier before it becomes more difficult again (it will). If 1466 breaks, first line of support is 1456.
Keith R. McCullough
Chief Executive Officer