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    MARKET EDGES

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Takeaway: Why buy a market that was overbought for the wrong reasons (Fed randomly devaluing the Dollar) when it’s not yet oversold?

POSITION: 5 LONGS, 5 SHORTS @Hedgeye

I don’t know about you, but ever since Bernanke moved the goal posts again, I have no idea what to do. Whenever that happens, I take down both my gross and net exposure.

Across our core risk management durations, here are the lines that matter to me most:

  1. Immediate-term TRADE overbought = 1725
  2. Immediate-term TRADE support = 1682
  3. Intermediate-term TREND support = 1655

In other words, why buy a market that was overbought for the wrong reasons (Fed randomly devaluing the Dollar) when it’s not yet oversold? You could have bought all your wanted with the SP500 at 1630 in AUG – and we did.

Not here – not now. No thanks, Ben.

KM

Keith R. McCullough
Chief Executive Officer

Neutral: SP500 Levels, Refreshed - SPX