POSITION: 4 LONGS, 4 SHORTS @Hedgeye
Nice rally (on no volume) after A) holding TREND support (1592) and B) breaking out above our TRADE line (1621) on more US Employment #GrowthAccelerating news (both NSA rolling Jobless Claims and Monthly Payrolls) last week.
Who said #RatesRising is bad? And for who? Where to from here? Our immediate-term risk range says there’s a risk spread of -3.5% (1), so we’ll sell some (taking net exposure from 7 LONGS, 3 SHORTS Friday to 4 by 4 here).
Across our core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE overbought = 1650
- Immediate-term TRADE support = 1621
- Intermediate-term TREND support = 1592
In other words, this risk range is narrow and trade-able, and we’re cool with that. The SP500 is in a Bullish Formation (bullish TRADE, TREND, TAIL) and the VIX is in a Bearish Formation, so we’re trying to thread the needle here within our range – but at least we know that.
Keith R. McCullough
Chief Executive Officer