Replies to post #99760 on Zeev's Turnips Patch-No Politics (ZEEV)

[TREND1]

Zeev
You wrote
Why go after a snorter when you have the like of GM, MMM, INTC, KO and PG

answer:
(1)Because BRCM not only goes up 3 times as fast.
(2)But goes down 3 times as fast.IMHO.

[hightecheast]

Zeev - The "set-up" on the S&P 500 futures using Larry Williams methods (which is what I use to trade futures) is saying (a) ... this rally is most probably about over, and (b) the S&P is getting set-up for a very big rally later - my guess is starting in October of this year.

The Commercials are quickly building a nice net long position in the S&Ps, and probably will continue to do so for some time, as they are almost always early (even very early).

At the same time, sentiment on the S&P is fairly bearish, and will probably get more bearish, which is a big part of a perfect bullish set-up.

However the combination formation of the ADX and stochastics is pinching together, which says the rally is about over. When they "paunch" far apart (and the commercials continue to get more and more long as sentiment gets lower and lower), then will be the big rally.

It will be similar to the same set-ups in October - 1998 ... November - 1999 ... April - 2001 ... September - 2001 (it was actually set-up long just prior to 911) ... July - 2002 ... and October - 2002.

That is if the system still works ... <g>

Ken Wilson

[Sir Realist]

Especially triple tops where the third top breaks above the first two, as just occurred, and midway in an earnings season, it's pretty rare to see catastrophic plunges.

[Tenchu]

Zeev, <Why go after a snorter when you have the like of GM, MMM, INTC, KO and PG not too far (all less than 5%) from a safe stop and with just as much potential to fall (particularly KO whicvh I think could sing to the low to mid $30 and GM revisit the $30 area or maybe even breach it a little).>

Because I think this "snorter" is fundamentally more bark than bite. I think BRCM as a company is setting up "new economy" expectations that cannot be met, especially with management that does boneheaded moves like sack the head of its ServerWorks division.

Yeah, yeah, if the TA and the FA don't jibe ... but that won't stop me from finding another short entry point for BRCM. ;-)

Tenchu

[Carl D]

Zeev, how far would you see MMM falling? It has already dropped from 136(intaday)/134. Will the support around 128 hold it?
TIA