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S&P 500 geodesic pairs trade - September 4, 2009

|Includes: BIV, BLV, BND, IEF, IEI, LQD, SDS, SH, SPTL, SPDR S&P 500 Trust ETF (SPY), SSO, TBT, TIP, TLH, TLT
current model indication: cautiously bullish on the S&P 500 since 2009-08-21



based on this chart, the data appears to indicate the S&P 500 bull run since the march lows has a little more milage upward.  like a pendulum, the model has almost swung a full half cycle.  however, there doesn't appear to be any signs the swing is slowing down much.  the index will be entirely over-bought when the swing overshoots a value of ||vector-c|| = 0.7250.

dislosures:   in my SH-SPY pairs trade, i am still 95% SPY & 5% SH.  one half of my pairs trade is counter-weighted with holding bond ETFs listed in my tags. the remainder of my portfolio is in 15% cash.