Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Freep, I don't think that there is a real danger of going much below that 1263 area. As I mentioned to you on SI yesterday, the July set of extreme readings calls for a solid two months minimum advance, so a series of extreme P/C ratio may just gives you a slightly deeper retrenchment. Nothing is exact with this, but with that occurring so close to the 1400 area, the "criminal thing to do" would be to get a spike above 1400 before they really kill it. I don't think that will happen, and I would say that the 1368 print today is it for a little while, and have reduced exposure accordingly. The Naz tick is not going very extreme to the plus side here, so the optimism (though reflected in the P/C ratio) may not be as extreme as the P/C ratio implies. The Dow, and NYSE, on the other hand might be whacked more than the Naz.

Zeev