Zeev's Turnips Patch-No Politics (ZEEV)

[ajtj99]

I'm looking for a test of NDX 1470-1471, then a flush towards 1425-1430, ideally after CSCO's earnings Tuesday. The 5-day TRIN on the COMP is at 0.75, which has led to fast, corrective dumps in the past.

Zeev, I'm kind of surprised you're still this bearish here. The NASI has bounced at trendline support out of the 2002 lows at -900, and it's a rare year when it gets down that low. There are lots of other extremes that hit levels comparable to the May and August 2004 lows as well as the March 2003 lows.

Furthermore, inverse H&S patterns are once again working well after failing for several months. The 10-day and 10-week moving average of the put/call is at extremely high levels. Specialist short levels are extremely low, the SPX has closed back above 1164 on a weekly basis, and Rydex numbers are at levels seen at major lows.

I may be wrong, but I'm pretty bullish on the markets over the next couple of months, although I believe this week may end red. We'll see.