This note was originally published October 21, 2013 at 10:46 in Macro
POSITION: 7 LONGS, 5 SHORTS @Hedgeye
All-time is a long time. And fighting a setup like this (higher-lows and higher-all-time-highs) is as tough as tough gets. Forget about Fed fighting – don’t fight Mr. Market.
Across our core risk management durations, here are the lines that matter to me most:
- Immediate-term TRADE overbought = 1764
- Immediate-term TRADE support = 1712
- Intermediate-term TREND support = 1671
In other words, the US stock market remains in what we call a Bullish Formation (bullish on all 3 of our core durations – TRADE, TREND, and TAIL). If the reaction to the employment report is bullish, 1764 is next; if its bearish, 1712 is next.
Keith R. McCullough
Chief Executive Officer