From the desk of Steve Strazza @Sstrazza
We turned bearish on equities in February from a structural standpoint and have been tactically positioning ourselves in both directions since. We’ve taken advantage of the bifurcated market we’re in by continuing to find opportunities on both the long and short side. Right now we believe the near-term risk is to the downside in equities.
How defensive should we be and what will it take for us to turn bullish again?
Last week we put together a list of key levels that we want to see certain assets hold before turning bullish on stocks over any longer-term timeframe. We’re using this as our risk gauge for now.
As promised, we put that list into a table so that we can easily track and update its progress. Let’s dive in and see what the weight of the evidence is telling us right now.