SPY short initiated to hedge longs amid market pressure, Mark Minervini notes

SPY short initiated to hedge longs amid market pressure, Mark Minervini notes
Robust jobs keep Fed on hold

Mark Minervini, independent trader and educator at Self-employed, reports that strong payroll and jobs data are reinforcing expectations that the Federal Reserve will remain on hold.

He stated that the market is currently pricing in a possible rate hike, putting pressure on equities. Minervini noted that he shorted SPY two days prior as a hedge against long positions and reduced exposure by selling some extended stocks into strength.

Minervini recently observed that the S&P 500 remains on track for a fourth consecutive year of gains exceeding 15%, similar to the 1995–99 rally, according to a previous note. He also responded to criticism after achieving a 25% trading return in nine days and discussed the challenges of hindsight bias in a separate statement.

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