Friday, November 16, 2007

SPY

If the SPY can hold yesterdays low 144.54 it will have formed a lower high. The trend line from the Aug. low of 137 to the March low of 136.74 to yesterdays low will remain intact. On the other hand there is a down trend mentioned in yesterdays post from the Oct. high of 157.52 to 144.54. They can't both last forever. The stochastics are undet 50 and moving up. When down trends like that are broken the shorts(like us) run for cover and the price will away fast. We want to be in. Since we are short the SPY I like the IVV to enter the long side on.

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