Zeev's Turnips Patch-No Politics (ZEEV)

[Leum]

What concerns me is the volume spike on Friday without corresponding price movement such as one would find during a capitulation phase. I am still looking for such an anomaly which corresponds with bullish indications. In essence, I would feel more comfortable long if the volume on all the major indicies reflected a greater downward price movement signalling some degree of panic selling and the spike in the p/c ratio. It is this correlation or lining up of signals that would give me greater confidence in buying rather than selling. Absence such a price movement (one way or the other) to explain the volume or justify it, I will remain skeptical about any significant rally potential. To me Friday looked like a bunch of distribution regardless of last weeks p/c ratio spike coupled with some ugly technical developments, e.g. the SOX dipping below 250 and the DOW failing to hold onto 8000. I can argue the p/c ratio both ways as a valid indicator at this point in time and do not discount 9/21/01 vis a vis the p/c ratio, but I will side with caution due to such anomalies being present at this juncture.

Dave Leum