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Tuesday, June 28, 2011

Trade... ATI

If the austerity passes, ATI is setting up for a continued run.  With financial stability in place, aerospace will continue to shine.  The aerospace and defense index is on the verge of a breakout from its current negativity.

The resistance is from the SMAs, and once it breaches, the PPA should rally to 20.50.

In sympathy, ATI has bounced off its daily 200SMA.

Obviously ATI has some resistance of its own between 64-66, but with the continued aerospace boom, ATI should test its upper range by year-end.  With a passing austerity, I will make an initial entry of the Oct 62.5 calls. (I will be actively trading it around its potential resistance.)

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