Monday, June 7, 2010


It would be nice to know if the "event", such as - Grave concerns in Hungary drove U.S. stocks lower - as reported by media pundits, actually drives the stockmarket (nearly 100 million investors strong, simultaneously reacting), or whether the drop in stocks makes the "event" more serious.

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 WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:106410891561683
CBOE Eq. put/call: 605996-10/0846-1/03
McClellan Osc:-30-14108-123
McClellan Sum:-307-2301568-1514
Newsletter Surveys

AAII Bull:
AAII Bear:
Nova/Ursa Mutual Funds:
US Equity-1 week lagn/a-14.3B

Money Market Flows-9.6B5B

ETF equity:Monthly TotalsApr.831BMar.805B

Baltic Dry Index:3933407811700663
Bullish %:
Insider Corporate Sellers:12:12:1108:12:1

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