Saut: I Will Get More "Hate Mail" ...

Jeff Saut, the respectful strategist at Raymond James has posted his weekly missive, see the latest version here. Last week Jeff suggested this.

His call for this week (but read the full missive):

I am certain I will get more “hate mail” this week for trying to stay somewhat constructive on stocks and because I am leaving again to give a keynote address at Raymond James’ national conference, making it difficult to script anymore strategy “calls” for the week. That said, I will indeed try and do a call on Thursday morning. Nevertheless, we suggested last Tuesday that if the markets could get a pornographic plunge” type of hour, with a concurrent “look” below 7000 on the DJIA, it might be sufficient to lock in a tradeable low provided we are not in crash mode. Regrettably, we never got that “I think I am going to be sick” type of hour. So we begin this week with the same strategy. And this morning the pre-opening futures are down hard again on negative comments from Warren Buffet, another AIG Gotcha (AIG/$0.42), and more HSBC horrors (HBC/$34.80). Meanwhile, there is a TD Sequential Buy Setup (aka, Tom DeMark) on a daily, weekly, and now monthly basis, which is interesting because the DeMark indicator measures”trend exhaustion.” Consequently, we are attempting to focus on what could go right for the equity markets and the economy.

Click on chart to enlarge!

Consider as a probability!

I hope people have been evacuated from emergency areas?! It is not the time to play the hero, yet ...