Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

On 8/22, I strongly suggested closing the Dow six gambit (#msg-472445). I think it is now safe for the conservative players to reinstate some of these here and replace JNJ with AA (buy at let say $20.25 sell target just under $25), and replace MRK with EK at around $26.75 (target $32), then enter XOM under $32.75 for a move hopefully above $37.5 to the $39 area. MMM enter here around $116, for a move, this time, hopefully it takes out $130, but if not, just take the 10% or so. IBM could be bought probably around $62 (but here use a short stop at just under $60) for a move to the $74/76 area. MSFT at around $45 for about 8 to $9 bucks to the $53/$54 area. In all cases use stop losses at around 10% under the entry point. If MRK and JNJ break down in the next few days, they may join this list, right now both are still "perched".

Most of these should yield a 20% bounce in the next few weeks, maybe even more if the current decline takes care of what I expected in October (the same coalescence model I used last year might be at play here as well).

Zeev