This note was originally published March 04, 2013 at 10:30 in Macro
POSITIONS: 9 LONGS, 7 SHORTS @Hedgeye
US stocks up for 8 of the last 9 weeks and failed to overcome the weekly closing high (1519) both into Friday’s close and on this morning’s open. Pretty low stress signal, but I want to respect it for what it is, for now. Overall research fundamentals are actually still improving.
Across our core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE resistance = 1530 (YTD closing high)
- Immediate-term TRADE support = 1504
- Intermediate-term TREND support = 1468
In other words, you’d rather buy them right than buy them at every price. That’s what we are trying to help you with – timing. I’d rather tighten up my net exposure here and wait and watch for 1504 to hold.
Overall, testing and holding 1502-1504 is what the bulls should want. Up every week builds exhaustion.
Keith R. McCullough
Chief Executive Officer