At a recent auction, a Monet (read money) painting sold for $58M - and we thought Dutch tulips were overbought!
So far, only Maria Bartiromo has picked up on the point about increased Capital Gains next year and beyond as a possible cause for massive selling, being decided by our solons on the hill. I recently espied a history of CG tax changes for the past 20 years and was amazed at the various changes at different income levels every two years or so - how is it possible for a tax advisor to instruct their clients?
Last week's Indicators were as benign as the markets were volatile - although they stayed within the TR (trading range) of 10,250 to just below 9,900, at Support:
The McClellan Oscillator and Summation are starting to reach oversold areas, and the AAII Bulls/Bears ratio remianed pleasantly inverted -37 to 40. MMF flows were out of the funds, but probably into safe haven bonds. While CEO Insider selling quieted down from April's deluge.
Here are the numbers:
| MktSentiment | Last Week | Prev. Week | 5 Yr HI | 5 Yr LOW |
| DJIA: | 9931 | 10136 | 14093 | 6626 |
| Nasdaq: | 2219 | 2257 | 2805 | 1114 |
| S&P 500: | 1064 | 1089 | 1561 | 683 |
| CBOE Eq. put/call: | 60 | 59 | 96-10/08 | 46-1/03 |
| VIX: | 35.5 | 32.1 | 90 | 8.8 |
| McClellan Osc: | -30 | -14 | 108 | -123 |
| McClellan Sum: | -307 | -230 | 1568 | -1514 |
| Newsletter Surveys | ||||
InvestorsIntel.Bull: | 39.8 | 39.3 | 63 | 22.21 |
InvestorsIntel.Bear: | 28.4 | 29.2 | 54.4 | 16 |
AAII Bull: | 37.1 | 29.8 | n/a | n/a |
AAII Bear: | 40.8 | 50.9 | n/a | n/a |
| Nova/Ursa Mutual Funds: | 1.14 | 1.03 | 2.2 | 0.56 |
| US Equity-1 week lag | n/a | -14.3B | ||
| Money Market Flows | -9.6B | 5B | ||
| ETF equity:Monthly Totals | Apr.831B | Mar.805B | ||
| Baltic Dry Index: | 3933 | 4078 | 11700 | 663 |
Bullish %: | 45 | 48 | 88 | 2 |
| Insider Corporate Sellers: | 12:1 | 2:1 | 108:1 | 2:1 |
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: 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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