Stocks, however, could be heading for at least a Correction, with consecutive record highs rivaling 1987 !!!!!
Sentiment and Breadth seem equal to the rising market in intensity; Equity flows - funds and ETFs (those traded on exchanges) have been positive since the election (after a brief respite) . They were mostly flowing Out all of 2016 until then. Margin Debt is spectacularly high - a danger if stocks start to slide and people/robos have to sell to meet margin calls -Hello!
All else seems stable - Bulls, advance/declines, VIX, but Inflation -as measured by TIPS hit a new high last week. See below:
|New Hi's/Low's||Nasdaq h/l||496/95||555/85|
|US equity -ICI||Fund Flows||WeekLate||8.1B|
|MMF flows||Change in $B||5.1B||(2.0B)|
|MargDebt- top (300M)||monthly||490B|
|10-yr Tsy yield||hi= stock buying||2.3||2.4|
|2-yr Tsy Yield: Inflation||1.15||1.2|
With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: brentleonard.com for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Amazon.com: Zero (IN)Tolerance
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