POSITION: 10 LONGS, 5 SHORTS @Hedgeye
While its fascinating to watch the same pundits who tried calling a market top for all of 2013 do the same in 2014, calling tops is not a process. It’s a marketing gig. We do levels, risk ranges, and research instead.
Across our core risk management durations here are the levels that matter to me most:
- Immediate-term TRADE resistance = 1850
- Immediate-term TRADE support = 1824
- Intermediate-term TREND support = 1762
In other words, the SP500 is still bullish because it continues to signal a series of higher-lows (1824 support) and higher-highs (1850 resistance vs. the all-time closing high of 1848 on DEC 31).
With mean reversion support -4% lower (1762), that’s not to say that buying-the-damn-bubble #BTDB on down days is for the faint of heart. It’s just a friendly reminder that it continues to pay the bills if you buyem right.
Win the day,
Chief Executive Officer