This note was originally published May 20, 2013 at 10:58 in Macro
POSITION: 11 LONGS, 8 SHORTS @Hedgeye
The immediate-term TRADE overbought signal we issued last week didn’t last long, but the down -0.5% move we had the day after was the biggest down move in 10 days. We call these bear scraps within a very Bullish Formation.
Intraday Thursday was actually the 1st time I was net short (in #RealTimeAlerts) since November 29th, so I think the call got some attention. But so should have my covering shorts and getting back to net long on Friday morning.
That Consumer Confidence reading (+10% m/m in May vs April was that good, and all support lines for SPY held).
Across our core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE overbought = 1678
- Immediate-term TRADE support = 1647
- Intermediate-term TREND support = 1558
In other words, I listen to my wife and my machine (in that order). Overbought was as overbought did (for a day), as it will again (higher) and oversold will lower.