Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

chainik....

As has been the case lately, I will be playing tomorrow by ear and will wait to see what happens. I saw what I took as signs of the PPT at work this afternoon and again tonight, and that is the reason I abandoned my short positions late this afternoon when I would usually have carried them overnight in that position.

The employment report will have a lot to do with the mood tomorrow, and I expect a bad report, even after it gets a fresh coat of lipstick. The evening before a much watched report is a time when you can forget watching the futures - by the time the report comes out, they will probably be down a bit, but not much - unless the PPT is in the game. Should the report be as bad as I expect, I look for decent selling early to take the NAZ to new lows below 1160, probably to around 1150 or a little below. That is where I will be the most vigilant looking for the PPT.

So far, the market has done pretty much what I had called for earlier (#msg-495805), and I still expect new lows soon although we may (but don't have to) get another short bounce first since we are very oversold. I have said all along that warnings season would take us down to new lows and earnings season with negative guidance would take us even lower. For now, I see no reason to change that view, other than I now think it will take a bit longer to get to my target lows - perhaps sometime in late October or November.

mlsoft