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Weekly Outlook, 10-2

|Includes: American Pacific Corporation (APFC), MFA, SPXU-OLD, SPY, UPRO

 This week the market stalled. A few weeks ago I made reference to the island top formed on 8-2->8-10 and the similarities between it and the dates 9-13->9-17. That "top" in mid-September was proved false by the breakout above 1131 on 9-20. Also, the volume did not confirm that as a top formation. Volume confirmed the mid-August top, but not the one in mid-September. Volume once again gave an early clue of what was going to happen. This time around, volume is confirming that this is a top, but not as decisively as in August. Next week I expect either a breakout above 1150 or a gap down away from it. In either instance I will enter leveraged S&P500 positions. APFC & MFA continue to do well. I am continuing long positions in both of those, and have no plans of exiting them anytime soon.

Disclosure: Long APFC, MFA