Monday, April 17, 2006


Easter and the Income Tax deadline isn't doing much for stocks, as they continue to meander listlessly. The DJIA was up a "hare" for the week, and the SPX and Nasdaq down a bit.
Some selling in stocks and closed end funds was due to raising cash for taxes - a possible buying opportunity for muni CEFs. Technical damage was done to the Dow and SPX with breakdowns of the 50-day MA, Horizontal and rising bottoms Trend Lines.
Most Indicators remain neutral with the exception of a couple on both sides of the market:
First the Bullish signs - the CBOE put/call ratio (and ISE call/put) added to the positive cause, as did the McClellan Oscillator with its minus 49.8 reading (-50 seems to result in short term turnarounds).
Fuel for the Bears include more complacency in the surveys with the I.I. spread increasing with its 53 to 24 reading. Finally, the Panic/Euphoria Index in Barron's hit a relatively high record of -0.24, the least negative in many months, but a far cry from +.60 needed for Euphoria.

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: 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 Zero (IN)Tolerance

Subscribe in a reader


No comments:

Post a Comment