• It's Coming...

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

Tomorrow, the 2009 game ends. The score is on the board. The Crash Callers of 2009 feel shame.

Will yesterday’s close and this morning’s open bring back the Depressionistas? Or did they end up being those who are rightly depressed? Was the 1st down day for the SP500 in the last 7 marking the top, or just another higher-low?

These are questions that will have answers. Our goal is to find the risk adjusted ones to place capital behind.

In the chart below, I have outlined how tight and trade-able the immediate term risk management setup has become:

  1. Immediate term TRADE support = 1115
  2. Immediate term TRADE resistance = 1136

Since we have raised such a large cash position in the Asset Allocation Model, my plan is to buy and cover on the way down to the 1115 line. If that line breaks, the plan is that the plan is going to change.

The intermediate term TREND line of SP500 support is all the way down at 1080.

You don’t have to be a super smart Crash Caller to trade a proactively predictable range. Buy red, sell green.

KM

Tight & Trade-able: SP500 Levels, Refreshed...  - spx