taxidermy thursday, page-10

I've got buy zones of SPX 850 and XJO 3900.

Based on a forward PE multiple of 10 (last year's PE of 14), less 5%.

Last night my shorts didn't get refilled at 1052-1055. I expected the reverse at the end of day actually, for the SPX to rally up instead of a tonking.

What concerns me now, as far as bearish views are concerned is that we're already broken 1040 (forget bear market, we were in a bear market when we cracked 1100), and targeting lower prices....all these before the two biggest numbers are yet to be announced.

Going back to my posts earlier this week, I'm more cautious of the markets sell off hard on Tuesday and Wednesday, going short and reacting to bad data Thursday/Friday.

In all probabability, its time to buy the market should the data points disappoint and send the SPX gapping lower.

Hang Seng is still almost 1000 points in premium, I think thats going to be one I will refill today.

The psychological barrier of breaking 1000 however cannot be underestimated. If the numbers are bad enough in the next two nights, 850 is a reality in the making for next week, although I don't think so. 75 points on the SPX (1075 to 1000) in a week is a pretty severe selloff, without a bounce. Then again.....we've seen this movie before haven't we?