Republic Risk: Hedge

The market might be up, but the selling pressure is heavy.

Dear Fellow Expat:

You just received my update on the market.

We’re now negative on our intraday readings, evident by a negative daily turn on the MACD. The Russell 2000 ETF (IWM) is testing its 50-day moving average, reflecting concerns about higher rates for a few more months than expected.

The S&P 500 will test its 20-day moving average - and markets will react heavily to earnings after the bell. But it looks like we’re in a topping pattern right now, and the downside of the S&P 500 SPDR (SPY) if we break under the 20-day is about 470.

We’ll have a report tonight on Tower Semiconductor (TSEM). I expect the stock will test $26 as an entry. Meanwhile, keep your faith in the shipping names.

Teekay (TK) is up another 1.8% today. International Seaways (INSW) is up another 1.3%. And so on.

Be patient, play defense.

I’ll be back in a little bit with the TSEM report.

Stay positive,

Garrett Baldwin