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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 !!!

Thursday, February 18, 2010

Stock Market -- Short Term Technical

In the market technical post back on 2/1, I opined that the market
erosion had yielded up a tradeworthy oversold. We wound up with
an interval of choppy waters suitable for day traders, but a more
solid rally did start up last week. The significant short term oversold
has been eliminated. There is now upside to 1130 -1140 before a
challenging overbought would be in place.

Thanks for the rally. I'll leave the remaining short term upside to
others as I am curious whether some cyclic themes will play out
which suggest a more definitive shorter run bottom over the next
5 - 10 odd trading days. And, "curious" is the operant term here.
I have seen cycle action get busted enough times not to get
religious about them. But, since this cyclic play is one I happened
upon without any coaching, I look forward with enjoyment to see
if it plays out or if it is a mere passing phase.

S&P 500 chart.

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