The following post was initially issued to TLS members on December 20.
We have been mentioning that, while we were likely close in time to a market low, there was still short-term “plunge risk” in play prior to a potential low — with 2500 in the S&P 500 the first risk and 2400 the worst case scenario, in our view. We hit 2500 yesterday, as we noted in a Special Report:
Just a reminder that we are covering S&P 500 shorts near 2500-2510 (SPY 250-251) — and adding small long positions in S&P 500/SPY at those levels. Should the index reach 2400-2410 (SPY 240-241), we will be buying aggressively.
This Special Report is just a heads up that, while mostly unthinkable a few weeks ago, the 2400-2410 level is now approaching and may be hit at any time. We still plan to add long exposure at that level more aggressively. Equivalent levels in the Dow Jones Industrial Average and the Nasdaq 100 may be 22,300-22,500 and 6100-6200, respectively.
For updates on these risk indicators as well as market levels, timing and investment selection, continue to monitor our Daily Strategy Session videos. If you are interested in an “all-access” pass to our research and investment moves, we invite you to further check out The Lyons Share. Given an treacherous emerging market climate, there has never been a better time to reap the benefits of our risk-managed approach. Thanks for reading!
Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.