Tuesday, March 14, 2006


Barron's magazine reports that Henry Weingarten of the Astrologers Fund is warning of impending Doom in the markets from now until June, with the Dow falling below 10,000 again and the Nasdaw down 10% below 2000; similarly, a French thinktank is calling for an 80% probability that after March 20 a significant political crisis will occur (what else is new?).
Henry W says the planets are in similar states as the Real Estate crisis in 1989 and the 1929 stock crash.
Up until now, however, ennui is the byword, with the tight Trading Range in all 3 Indices (large caps stronger than OTC stocks) being reflected in most Sentiment Indicators. The Demand side (Bullish) is supported with Survey Bears rising over 30 (II and AAII) and Bulls' complacency falling into the low 40s; CBOE puts are at a high 66 over calls. Finally, the Rydex Nova/Ursa fund ratio slipped to a nearterm low of 17 ( the lower the better, for Bulls).
The Supply side (Bears) has less evidence of conviction with shorting abating (Public vs. Specialist), and the Panic/Euphoria Master Indicator rising to -0.39, still under water to Sea level of -.30 bounding the Panic level.

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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