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DOWNSIDE MOMENTUM CONTINUES IN MARKETS. COVERING SOME SHORTS ANYWAY. NEW LONG AND SHORT POSITIONS.

Our Market Internal Indicators continue to trend down. Our ChartMeter ASP has fallen from 55.47% bullish on 2 July to 23.63% bullish today. Our Longer-Term indicators, T11D Sunmarry and M4 21 Sum, have fallen, respectively, from 55.27% bullish on 9 July to 44.1% bullish today, and from 65% bullish on 10 July to 43% bullish today.

Date SPX CM ASP T11D Sum M4 21 Sm
7/2/12 1365.51 55.47% 49.80%  
7/3/12 1374.02 56.64% 50.00%  
7/5/12 1367.58 57.03% 54.30%  
7/6/12 1354.68 50.20% 55.08%  
7/9/12 1352.46 47.27% 55.27%  
7/10/12 1341.47 41.80% 54.69% 65.43%
7/11/12 1341.45 40.23% 53.52% 63.28%
7/12/12 1341.76 36.52% 51.76% 58.40%
7/13/12 1356.78 46.09% 50.20% 58.79%
7/16/12 1353.64 41.80% 50.20% 56.64%
7/17/12 1363.67 42.77% 49.02% 55.27%
7/18/12 1372.78 49.41% 49.41% 55.47%
7/19/12 1376.51 48.83% 50.00% 56.25%
7/20/12 1362.66 42.38% 48.24% 53.71%
7/23/12 1350.52 31.45% 47.07% 48.82%
7/24/12 1338.31 23.63% 44.14% 42.97%
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See the CM ASP chart below.

The theme for today is that we are taking profits in some short positions. We don't think the decline is over; but we are ready for a reverse bounce up.

We have a group of new LONG positions to trade this bounce up: ARX, CA, Fortis, JEC, TTI.

We have a few new short positions also: AONE, ARNA, BMI, LXRX, OREX.

We are covering short positions with reasonable to healthy profits in: FTSE, CTSH, FDX, FXI, INTC, MCD, Glendore International.

We'll start with the short covering positons:

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NEW SHORT POSITIONS

AONE, ARNA, BMI, LXRX, OREX. The last two are in quite healthy uptrends; but we are trying to play the short-term sell-off we are expecting to get profits.

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NEW LONG POSITIONS. These are trading positions, as we don't believe the market has finished this sell-off yet.

ARX, CA, Fortis, JEC, TTI.

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Michael J. Clark, Hanoi, Vietnam