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My reading of the stock charts tonight suggest that a sharp correction
is about to occur. There are many sickly looking head/shoulders
patterns setting up right now, most pointing to a downward resolution
within days, perhaps starting tomorrow. I don't know what the inflation
and sales numbers will be, but even if they are bullish, I believe the
market will sell off anyway very shortly. Adding support to the bearish
case was today's OEX put/call ratio of 1.06. This is a relatively low
and somewhat bearish ratio in spite of the sharp drop in stocks in the
afternoon. The equity put/call ratio has been bearish for many weeks,
but the bearish case has not been resolved. I believe it will be soon.
Use extra care if you are long now or intend to go long in here.
Glen Jones
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