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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, July 10, 2007

Stock Market -- Technical

The price compression period underway for the past several
weeks has eliminated the shorter term overbought and
extended conditions for the market. Despite flashing caution
lights, the market has been bending, but has not broken.

So we find we have a US market that is still trending higher
from its mid-2006 interim low, but one which is still elevated
enough to suffer a sharp correction without losing the trend.

To make matters more interesting, periods of price compression
in the market can last for a good several months and need not
be wound up quickly with a break out or a break down in price.

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