Record low interest rates usually indicate a bad Economy, but the Stock Market roars on!
The wrong Sectors - defensive - are leading the market - Util, Finance, Health, Staples. Quarterly earnings are down for the 5th Q. 18 of the last 19 Recessions have seen the Fed tighten in some manner; they also seem to occur @ the zero year of a decade.
But Breadth is incredibly strong recently - for only the third week in 2016 (since Feb.) mutual equity funds showed Inflows, only .3B - of course ETFs have gained more this year. NYSE new highs to lows were --- 659 to 11; stocks on BUY signals are high.
For the second month in a row (third this year) Insider Selling is huge (Bearish). Each time, including also last Nov., the market sold off.
Here are the numbers:
|WklyVolume (Bshs).||naz/ny….||8.4/4.3||7.1/3.8 *|
|New Hi's/Low's||Nasdaq h/l||387/70||242/116|
|US equity -ICI||Fund Flows||WeekLate||.3B|
|MMF flows||Change in $B||(2B)||(17.4B)|
|MargDebt- top (300M)||monthly|
|10-yr Tsy yield||hi= stock buying||1.55%||1.36%|
|2-yr Tsy Yield: Inflation||0.67%||0.60%|
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
Subscribe in a reader