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Higher lows are tough for short sellers to deal with. Higher highs are what brings the bulls out to chase. Can Squeezy The Shark snap at the consensus short sellers above this rally's prior high? That remains, THE question...

Another important question is: what do February 9th and April 17th of 2009 have in common? Both of those days were the prior closing highs of their respective months, and both of those SP500 closing prints were 869. While the January 6th closing high of 934 is the YTD high (and an intermediate line of resistance that you should bake into your risk management plan), I think a close above that 869 line is plenty higher a high to be paying acute attention to...

The most impressive part about this +27% rally from the March 9th low, is how unimpressive some of the performance numbers have been in this marketplace. While some of our clients are absolutely crushing it right now, I hear plenty of returns in the hedge fund industry for April are below average at best. Anyone who took John Mack's market view is getting squeezed.

I am now establishing a buying range (shaded green waters that Squeezy is jumping out of in the chart below) of 832-853. For the immediate term TRADE, we'll be overbought at 875 - on the way up, understand the game that's being played here, and get hedged. This is as trade-able a range as I have seen since 2003.


Keith R. McCullough
Chief Executive Officer

Squeezy's Got Hang Time: SP500 Levels, Refreshed...  - shark