Zeev's Turnips Patch-No Politics (ZEEV)

[lee kramer]

Justa: The economy and the key fundamental economic numbers are and have been awful...but one thing I've noted over a few decades: The "market" tends to bottom, then rise, well before the economy turns around. Not always of course, but quite often. If you pull up the weekly charts of the DOW, Nasdaq, S&P you'll note a 9 month inverted H&S bottom formation. As long as the right shoulder isn't violated, as long as the "head" isn't violated, the probability is pretty good that the next phase in the averages will be the "mark-up phase." The market is similar to a retail operation. Inventory is "accumulated"....then it's marked-up [in price] until buyers are sellers enter into a "balance" and it becomes increasingly difficult to sell the inventory. The next phase is the mark-down phase, gently at first, then more aggressively in an attempt to sell remaining inventory. Eventually inventory is re-accumulated at Very Nice [low] prices...and the cycle begins again. As a day-trader I don't care much about this, but it does give a nice indication of which way we mat be heading.