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Thursday, November 25, 2010

SPY 117.5 - 123, Trading Range Scenario Ongoing

-Despite some volatile up & down movement, SPY is moving as was expected back on 11/17/10, within a trading range, and given the environment of rising uncertainty abroad with improving economic fundamentals here in the U.S., I would think that the 117.5 - 123 trading range for the remainder of the year is the likely scenario.

-And perhaps, this scenario is what options investors are betting as the likely scenario as well, since mean implied volatility index is 16.43% versus 19.8 figure shown by Fair Volatility Estimate Indicator. Even when taking into account Thanksgiving holiday and the weekend, implied volatility seems low when compared to the way SPY is moving.

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