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Friday, September 24, 2010

SPY Uptrend Intact


- Durable Goods Orders and German Business Sentiment helped boost the market in early trade. This market is very strong based on the speed and duration of ascent from the most recent bottom of 104.5. Just look at AAPL, AMZN, NFLX, FCX that are leading the market.

- Having said that, yesterday's low of 112.18 gives us a reference to draw a trendline, and I would use this trendline as my first profit stop/limit. Second profit stop/limit is being raised to 111.9.

- Fair Value Estimate Indicator is 19.6 and SPY IV which was creeping higher last few days is now at 19. FVE indicator is, however, above its moving average. Whether this continues in the next few days is uncertain, but should prices break below profit stop levels, we may want consider going short at those levels as well.

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