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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 !!!

Friday, September 19, 2008

Stock Market -- Technical

The furious two day relief rally brought the market back from
deep short term oversold to neutral. Today's advance was
strong enough to preclude an automatic bout of heavy profit
taking by short run players on Monday ahead. Clearly though
the current trajectory up is not going to last too long before
money flys off the table. Remember as well the normal admonition
regarding the untrustworthiness of spike bottoms such as we
saw Thursday.

If the enthusiasm does spill over into next week, I would expect
some traders to start cashing in about 2% above today's close.
The SP 500 went out today at 1255, so I would look for some
nastinesss to set in around the 1280 level.

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