In this past weekend’s article, I laid out my positioning for a short-term rally back to recent highs and why we were looking to “modestly” increase exposure. To wit:
“That is what we got this past week as the market retested the most recent breakout above the Fibonacci 61.8% retracement level twice.
While the weekly ‘buy signal’ did NOT trigger this week, keeping our allocation model at 75%, we have been adding exposure over the last few weeks as the market continued to break out of consolidations. As we stated previously, we were looking for the following setup to add equity exposure to portfolios.
- A retracement back to previous support that did not violate it
- An oversold condition on a short-term basis.
- An opportunistic setup for a continuation of our investment pathway #2a
As shown in the chart below, all three requirements were fulfilled this week. Therefore, on Thursday and Friday, we did increase equity exposure and will look to add more on any weakness in the markets early next week.”
Over the weekend, my friend Doug Kass disagreed with my view:
Coming up Monday morning on @TSTRealMoneyPro — why I respectfully disagree with my pal @LanceRoberts
By contrast I have been building up my net short exposure in the last ten days. https://t.co/t2EmjGHy67
— Douglas Kass (@DougKass) June 23, 2018
In yesterday’s post, he clarified his reasoning behind his view of more trouble ahead for the market.
