Monday, October 26, 2009

HALLOWE'EN , PART TWO:

Today's Sentiment posting is in 2 parts, as the new system requires special handling - so here is the commentary for Oct.26:
The stock market has more legs than the Fox Channel, despite today's month-end profit-taking. Although most all foreign money is going into bonds (Treasurys, GSEs, etc.) Trillions are still looking for a home above zero percent, especially with the safety that the U.S. provides.
According to the latest JP Morgan Quarterly booklet in the 4 great Recessions the past century with consecutive declines in the market, all saw highdouble-digit or triple-digit returns following the trough: 
Great Depression - down 71%, up 148%
WWII - down 34%, up 100%
1974 Oil Crisis - down 42%, up 57%
Internet Bubble - down 42%, up 67% into 2007
Breadth remains huge,with New Highs outnumbering New Lows on the NYSE 713 to 8!
CEO Insider Selling remains worrisome at 22:1 and the Investors Intelligence Bulls are complacently high at 49; yet the McClellan Oscillator is at its support level of -50.

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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