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Mike
03-21-2013, 09:04 AM
The market has had more resilience than expected but going with the flow I only hold long positions at this point (VRX, CBI, GEOS, CVLT and AL). It was quite possible to short LULU before its breakdown so some short positions can work. One of my acquaintances is in this trade.

I can see one divergence however that makes me wonder if the party is soon to be over. Copper prices tend to trade with the general market. Copper prices seem to be breaking down. The attached chart is the continuous copper futures contract on a weekly chart going back to the beginning of the bull market. Copper has been trading in a narrowing range for about 18 months and is just now breaking below the triangular structure. This may portend a likewise response in the general market.

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