Adam-Cox

SP500: Sell Rallies - Pre-empt Pullback

Short
AMEX:SPY   SPDR S&P 500 ETF TRUST
My strategy for the SP500 index is as follows:

- Exit Long positions on rallies and hold a core long position for the long term ( "time in the market")
- Wait for a deep pullback to start adding back Longs ( SP500 is growth function)
- Happy to scalp short term, but I like a to 'load the wagon" long if we had a decent 600-1000 point correction!
- Trade in smalls and build a position (limit grids - no 'binary' trading)

Fiscal stimulus is still strong. Downside issues is the ridiculous USA debt ceiling, which is meaningless in a fiat currency system, but which is exploited for political reasons.

Infrastructures deal is great for the market - but that seems subject to risks also. The ideal situation would be to have a 'deep' correction, and then have a decent infrastructure deal be agreed to and passed in the house.

NB. Infrastructure deal is passed and debt ceiling is avoided - ignore the above (but it is very unlikely that we will not have volatility and further downside runs in the market as we approach end of September and go into October).

Adam Cox, SFFIN, MFTA