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“I'm not going to waste my time arguing with a man who's lining up to be a hot lunch.”

-Hooper (Jaws, 1975)

Back by popular request (after getting my 954 level wrong) is the mascot we rode for the better part of Q2, Squeezy The Shark. Make no mistake, this market’s quantitative setup has changed, and unless you change with it, as Quint would say, “This shark, swallow you whole.”

When the market was on the lows this morning I bought the Nasdaq (QQQQ) as it’s fundamental setup is stronger (great balance sheets + liquidity) than that of the SP500 (financials, leverage, etc…). That said, the SP500 is Mr. Market, so that’s where I anchor our US equity risk management process.

In the chart below, Andrew Barber and I have outlined our new nautical map:

  1. TAIL = 954 (resistance now becomes support)
  2. TREND = 897 (way lower,  but higher than my Range Rover 871 which has held in nicely so far in Q3)
  3. TRADE = 948 (that’s the line that you need to watch-out for Squeezy at – trust the shorts, they are there)

Happy swimming,

KM

Keith R. McCullough
Chief Executive Officer

Squeezy's Return: SP500 Levels, Refreshed...  - sharky22