POSITION: 8 LONGS, 3 SHORTS @Hedgeye
As my colleague Daryl Jones offered up as the opening volley in the Early Look this morning, “Volumes are light, ideas are sparse and the Hamptons are packed. Welcome to summer on Wall Street!” We at Hedgeye are, however, not short on investment ideas (see our best ideas list included in today’s Early Look) and are keeping our eyes peeled on buying opportunities into this equity market correction.
Grounded behind our call on #GrowthAccelerating and #RatesRising, and with the SPX currently -3.4% off its year-to-date high (on 8/2), our core risk management durations for the SPX are:
- Intermediate-term TREND support = 1631, held
- Immediate-term TRADE support = 1642, held too
- Immediate-term TRADE resistance = 1670, then the all-time high = 1709
In other words, we like the risk/reward set-up of covering shorts and buying them here.
Enjoy your summer Thursday,
Matthew Hedrick
Senior Analyst
