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Yo Sammy!

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Tony - Hey Sammy, how goes it?

Sammy - It goes great. We have moved to the upper end of the range and the lower end of the range a few times now. What is interesting is that when we were at the lower end of the range it felt like a breakdown was imminent and now the talk of a breakout is imminent.

Tony - I know what you mean. I have been talking about this consolidation period as one accompanied with a great deal of volatility and very little progress in either direction. I would just caution you about feeling too comfortable because the funny thing about trading ranges is that they are great until everyone notices them because it is then that they get broken.

Sammy - Great point Snoop. It seems like everyone wants to fade the rally as we bump up against resistance at 1015 on the S&P 500. It seems to make a ton of sense to me because in a perfect world we could stay in a trading range forever.

Tony - Wouldn't that be boring though. As we continue to get economic releases suggesting the economy is catching some wind, the positive influence of growth prospects should begin to trump concerns about higher rates. For now they are kind of offsetting each other depending upon the week or the most recent news event. Ultimately, the positive influence of better growth could spark a move to the upside. The only question is whether it begins with a whoosh lower on a break of 975 or begins with a move above 1015.

Sammy - So in snake talk, what are you saying?

Tony - There is no reason to bet what the next directional move is until a break of the range takes place. For now it is too defined and reported on, so over coming weeks, something has got to give and when it does, you better have a plan ahead of time so you are ready. There is no need to make a big stand until the range is broken because it is soooooo tight.

Sammy - You make some sense in here Tony - I am glad I Sssssssssssslithered by.

Tony - You are the one that has been on the money Sammy, what do you think Bond, Brian Bond 008 would say to this? I think he is over by the Store looking to grab a Sammy T-shirt.
Have a great day off Toddo
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