POSITIONS: 7 LONGS, 5 SHORTS @Hedgeye
Do you do the mo mo?
After shorting the market too early in Q3 of 2007 (and getting fired for it), I had to teach myself how to not mess up missing the next melt-up to all-time highs. Risk managing bullish immediate-term TRADE momentum within a bullish intermediate-term TREND is a process.
With flows (out of bonds into stocks) this bullish, it’s more about time/price right now than anything else. So my levels are really important to me. Across our core risk management durations here are the levels that matter to me most:
- Immediate-term TRADE resistance = 1858
- Immediate-term TRADE support = 1833
- Intermediate-term TREND support = 1758
In other words, over the intermediate-term (now through June) you have a 100 point SP500 range of risk to consider (1).
In the immediate-term, it’s more a question as to whether or not Mr. Macro Market’s signal is right that we are going to continue to see a series of higher-lows (1833 support) and higher-highs (1858 resistance).
That is all. We held 1833 TRADE support this morning, so I bought Tesla (TSLA) instead of SPY (more mo mo in TSLA!).
Chief Executive Officer