Tuesday, June 28, 2005


Despite two ugly days last week, as they square positions for the quarter ending, not too much changed in the realm of sentiment. What with rebalancing the Russell Indexes, institutions and hedge funds selling losers and buying winners (read Google) for window dressing, even a 300+ point drop in the Dow only changed a few of my signals:The ISEE put/call ratio, getting more attention now that the ISE is coming out with new futures on gold, oil, etc., went to a Bearish 247 (well above the 200 mark), the McClellan Oscillator went minus to -21 from +45, with its concomitant Summation rising to scary highs of +784 in spite of a negative A/D on the NYSE for the week. Adding to the Bearish view, the AAII Bear number slipped further to only 18.2, with the I.I. at 20.2, while the Market Vane Bulls shot up to 70.

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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