Friday night (the 23) we called for a violent move that would potentially get us to 1204.
We stated, "In the Short Term: We suggest reducing equity exposure at 1176, 1190 and 1204 to raise cash and re-enter at better levels. For those investors that don’t want to reduce their long term holdings we suggest protecting their capital at all cost. This can be done with an overlay of shorting SPY or buying some Put protection. We think there could get a violent move to the upside back to 1204 with any positive EU backstop that should be sold. But if you are looking at the YTD chart of the S&P 500 we are not over sold. There is a marginal chance we hold of the bottom of the region we have identified over the last 7 weeks."
|