Zeev's Turnips Patch-No Politics (ZEEV)

[yayaa]

1/2 late last night before bed T,can only post a few times a day. Hit at 240.Placed a protective stop at 330 for the day,have some traveling to do. I am still holding a few more here as I see downside is inevitable through Oct. Here is a Great read from someone I trust and who has an oustanding record.

The Dow Industrials plunged 212.82 points intraday Friday, taking stocks down exactly 600 points in two days, before the PPT came in late Friday and bought the market hard to bring the DJIA back to a loss of 31.14 points Friday, closing at 13,239.54, an expected bloodbath after the ridiculous decision by the Fed on Tuesday to leave interest rates alone as Rome burns. The PPT has stepped in the past four days, triggering short-covering rallies late Tuesday and Wednesday, then intervening to stop an all-out stock market crash on Thursday, August 9th, which was the second worst single day decline in 2007. They bought markets again on Friday, for the same crash prevention reason. The PPT is taking advantage of the high short-interest position, initiating short-covering intervention. We've been warning wave iii down could feel like a crash. Thursday and Friday was quite a start. NYSE volume was 109 percent of its 10 day average on Friday. Downside volume led at 55 percent, with declining issues leading at 61 percent, with S&P 500 downside points at 75 percent.

We sit Friday with ten Hindenburg Omen observations since mid-June. This is a sign of an unhealthy market, especially considering we just hit new all-time highs as recently as July 19th, but not totally unexpected at an Intermediate wave 1 top, a significant top, which occurred on a closing basis at DJIA 14,000 July 19th. Three weekends ago, we presented the cyclical conc! ern we have at this time, a decennial pattern where years that end in 6 or 7 have seen major declines over the past century. There was no significant decline in 2006, so we are due, and appear to be in the throes of one. With Intermediate wave 1 up complete, the 2007 decennial decline is Intermediate degree wave 2. Wave 2 could last only a few months if severe and in the form of a crash, or could last into early 2008 if more orderly. The Hindenburg Omen warns of th! e potential for a crash. Wave iii down of 2 down already feels like a crash. Since our recent phi mate turn date, which occurred on Thursday, July 19th, 2007 at DJIA 14,000, the Dow Industrials dropped 943 points, or 6.74 percent, in three weeks. What bothers us is that we do not have another phi mate turn date until October. That doesn't mean we cannot have a major turn between phi mate turn dates, but it would be rare.

S&P 500 Demand Power rose 2 points to 402, with Supply Pressure also rising, up 3 points to 473, telling us both selling interest (everybody) and buying interest (Central Banks) rose Friday. Whenever the change in DP is vastly different than the change in SP, it tells us an abnormal intervention occurred. If buying power rises 2 points, then an orderly market would see SP fall 2 points. This market is not orderly. The DP/SP indicator remains on an "enter ! short positions" signal from July 24th, as Supply Pressure crossed more than 10 points above Demand Power.



NYSE New 52 week Highs fell to 24, with New Lows rising sharply to 447 Friday. The short-term corrective wave ii rally leg was mostly shorts doing the buying, not a broad-based stampede by bulls, which is Bearish. The lower of the two News Highs/New Lows readings Friday was below the 2.2 percent threshold necessary for another Hindenburg Omen observation. Markets are operating on the clock of a confirmed Hindenburg Omen signal, meaning there is a far greater than normal risk of a significant decline between now and October. That decline started Thurs! day, July 19th, our phi mate turn date of July 20th +/- a few days.



Friday's McClellan Oscillator worsened to negative -106.41, while the Summation Index fell to negative -1,231.75. The last time it went negative was July 2006. The percent of DJIA stocks above their 30 day moving average rose to 16.67 from 13.33. The percent above 10 day remained at 30.00. The percent above 5 day fell to an extreme oversold 6.67 from 23.33.



The Weekly MACD reading generated a new "sell" signal Friday, July 27th, warning more downside, significant downside, is probable intermediate-term. With a weekly MACD sell signal in the major averages, along with a Hindenburg Omen signal, and two more new H.O. observations as recent as this week, this is a dangerous situation for markets. There should be some bounces, however, there may not be many if this is going to be a three to five month bloodbath, and bounces can be good places to set up short positions if an aggressive trader. Think about this: Intermediate Wave 1 rose in the DJIA from 7,200 in October 2002 to 14,000 in July 2007. A typical wave 2 correction of wave 1 is .382 percent, which would take the Dow Industrials down to 11,400ish. A phi correction, .618, would take the DJIA down to 9,800ish. Wave 2's! can retrace much more, nearly the entire wave 1 move, but that is not as likely. Intermediate wave 2 will likely be an a-down, b-up, c-down zigzag, or flat. Another fabulous shorting spot will come near the ! top of b-up, maybe in a few months. Tuesday and Wednesday's late day PPT intervention rallies were designed to protect the Fed from embarrassment, the shame of a plunge after their open market committee announcement on interest rates. However, the chickens came home to roost on Thursday. The plunge has come, as wave iii down takes hold.

Cheers and good fortune to you and family.

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