Zeev's Turnips Patch-No Politics (ZEEV)

[redwards]

ot- where is this guy coming from ,,?"there are signs that the stock market is up against short-term resistance and due for a correction/consolidation.

Two "dumb money" measures suggest that the crowd is now joining the bullish institutional camp. Last week, investment advisory sentiment, as measured by Investors Intelligence, turned wildly bullish on the stock market. The number of bearish investment advisors declined to multi-year lows (20.9 percent).

The CBOE Equity put/call ratio declined to market-topping levels of (.50) or lower on May 27 and 28. What this means is that twice as many calls have been purchased as puts for the past two days. This is the first time in the context of the 20 percent plus March 12 rally that this important put/call ratio has been at topping levels for two sessions in a row.

The stock market should correct, consolidate or "reload" during the course of the next few weeks before moving to new highs in the first half of July.

On a price-basis, this basically constructive picture will remain in tact provided the S&P 500 Cash Index can remain above the (SPX 913) mark.

As Neo learns from the programmer of the Matrix (God-figure), the pattern of humans rising up against the machines but ultimately being defeated has occurred repeatedly throughout history. This seems an appropriate metaphor for the history of the stock market as investors are repeatedly defeated by their own emotions such as greed and fear, recently manifested in the stock market bubble and collapse.

The only way to defeat the Smiths or conquer the stock market is through understanding the mechanism of the "Matrix" or the markets."http://www.marketwatch.com/news/story.asp?guid={240E1F1E-A9E7-4A66-BB70-2283C44DE732}&siteid=yho...