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About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Tuesday, June 05, 2007

Stock Market -- Technical

The broad market remains in an uptrend. Recent
momentum loss and today's sell-off have erased the
case for a short term overbought condition. However,
viewed in the intermediate term (3-6 months), the
market, although still in a clear uptrend, is both
extended and overbought, even when operating within
the confines of the strong upward trajectory underway
since mid-2006. The intermediate term work does not
presage an imminent correction as it stands, but it
does suggest a little caution is in order. I have
linked to the broad Value Line Arithmetic index ($VLE)
below.I like this one because it includes the top
mid and small caps along with the majors, but is not
capitalization weighted. The $VLE.

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