Zeev's Turnips Patch-No Politics (ZEEV)

[ogm]

Zeev, what do you think of the longer term charts ? I'm looking at monthly charts and only one word comes to mind. "UGLY".
XBD, DRG, BKX, BTK, SOX, DOW, all look ugly.
Nasty bearish MACD crossovers have already happened on some of them, and are about to happen on the rest. CCI average topped out in overbought and turing down. Momentum cycle turning down too. Technicals don't look good. A lot of potential H&S or double top patterns.

Weekly charts aren't that bad an are mostly somewhere in the midle. But considering monthly charts, I just can't imagine any significant upside from here. Everyone is anticipating the after elections relief rally, at the same time economic data keeps getting weaker.

I would also disagree that what is happening to AIG and MRK is unusual an unique. These are the "confidence" stocks. Held in almost every portfolio. I think it should be viewed in the general context of the "fluff" coming out of the stocks. And it certainly seems that the effect they are having on the market will only spread. In other words it will get worse before it gets better.

I know you're intermidiate term bullish, but are there any fundamental reasons except for seasonality, that you see ?