Monday, February 15, 2010


The recently failed January Barometer - the month of January ending at a loss- is just one piece of a "nesting" of cycles that do not bode well for 2010: the zero year of the Decennial cycle is the worst of the 10, over 11 previous cycles; the Presidential, or 4-year Kitchin cycle has produced a large selloff since WWII; Martin Pring's 18-19 year cycle, which he calls the Lost Decade, as we saw similarly in Japan recently, also sees an alternating Bull to sideways/down cycle going back 200 years.

The good news is (for me) that my book on an alternative investment strategy to zero interest rates - Zero (In)Tolerance  should be ready for publication any day now. Any readers who are "FED" up with the punitive short term rates for retirees, prudent investors - pushing them into riskier investments (see declining Money Market Fund Flows below), might want to check this under-$20 book when released by Amazon's More info can be had at, also new.

Sentimentally, MMF flows were negative for the 5th week in a row, but for the first time, U.S. Equity flows turned negative, after the recent decline.

Despite the negative 40% of Inv.Intell. people surveyed calling for a correction - first time since 1983, both the I.I. and the AAII remain inverted intheir Bull/Bear ratios - a Bullish sign FOR the market. Also low is the Nova/Ursa fund ratio of longs to shorts.

Here are the numbers:

S&P 500:107510661561683
CBOE Eq. put/call: 696996-10/0846-1/03
McClellan Osc:1-69108-100
McClellan Sum:1542991568-1514
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AAII Bull:
AAII Bear:
Nova/Ursa Mutual Funds:0.400.512.20.56
US Equity-1 week lag           n/a                   -2.2B

Money Market Flows-6.7B-13.6B

ETF equity:Monthly TotalsDec.777BNov.738BB

Baltic Dry Index:2571268511700663
Bullish %:
Insider Corporate Sellers:11:128:1108:12.4:1

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

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