Two-Month, 450 bps Sell-off in the SPX Apparently Now Enough to Ring the “Crash” Sirens?
We’re once again seeing notable calls or premonitions for some type of impending market crash. Tonight, ZeroHedge trots out such a call with the use of some analogs, apparently by way of Bloomberg and Citi. We are also on the…
Updating Our Downside Targets
Our assumed downside target of ~1,360-1,370 is quickly approaching per line (1) support and analog support against the 1988-1989 4th/5th consecutive annual gain moves. We would begin to slowly raise net long positions in equity indices as this level approaches…...
Defense Out-Performance Thesis Yielding More Fruit Post-Election
Like TASR, SWHC was one of the names highlighted in our original defense industry out-performance thesis. We didn’t single it out as a focus name like TASR as it had already had a monster run and was approaching long-term resistance…...
Long CREE / Short PANL Spread Trade Now Up 45% in Two Months; Any Juice Left in the Squeeze?
Updating this trade given yesterday and today’s big decline in PANL post EPS. The technical set-up we highlighted on 9/27 appears to be playing out as hoped for. Though the ratio is now reaching an area of support confluence in…...
Opportunities in the Building Products & Construction Materials Space
Chart below plots the S&P Building Products Index. Remarkably, off its lows last October, the index is up ~145%. Now the index is approaching resistance line (1) dating back to 2007. It’s also approaching resistance region (A) which dates back…...
Bio-Techs Approaching Near-Term Support
We’ve been bullish on this group for as long as we can remember going back a full four months to this post. We’ve talked recently about the possibility for the group to remain a sustainable out-performer here. As of late…