Equities are very overbought and our matrix has switched from a momentum phase to an inflexion one: we are becoming short term bearish on US stocks and now neutral on European ones. Thus we take profit on Zalando, RWE, Tenaris, Kerry group and Vodafone.
The S&P500 has reached our wave (v) target and should correct at any time. We increase our put spread to its maximum size.
![](https://research.stouffcapital.com/wp-content/uploads/2019/12/image-41-1024x387.png)
After these adjustments, our net exposure is negative, which is the second time this year like in May 2019.