AUGHT FOR NAUGHT:

Not only is the 4-year President's or Kinchin cycle predicting a Fall crash, but the zero year in the Decennial cycle, for 11 cycles (1890) is the worst of the 10. That said, as more and more talking heads and scribes mention this fact, as a contrarian I hold out hope that Sept./Oct., as last year, might not be that bad. I continue to be fully invested in my DITM (covered call with a safety net) strategy, until proven otherwise, despite a gloomy economic picture.

According to Hirsch's Trader's Almanac, over a recent 57-year study, $10,000 became over $578,000 from Nov. to May, while its complementary 6-month period lost money to $341!; however, in that study of Election years, 14 of 21 times the market gained from Oct. to Dec., especially when incumbents were ousted.

The summer Dog Days kept Volume low and most indicators mid-range; however the AAII Bears (one of the most reliable contrary indicators) jumped from 30% to over 42. The Baltic Dry Index - BDI- is screaming to the upside, a sign of healthier global economies.

See below:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	10213	10303	14093	6626
Nasdaq:	2179	2176	2805	1114
S&P 500:	1071	1079	1561	683
CBOE Eq. put/call:	66	58	96-10/08	46-1/03
VIX:	25.5	26.2	90	8.8
McClellan Osc:	-34	-40	108	-123
McClellan Sum:	607	684	1568	-1514
Newsletter Surveys
InvestorsIntel.Bull:	36.7	41.7	63	22.21
InvestorsIntel.Bear:	31.1	27.5	54.4	16
AAII Bull:	30.1	39.8	n/a	n/a
AAII Bear:	42.5	30.1	n/a	n/a
Nova/Ursa Mutual Funds:	n/a	n/a	2.2	0.56
US Equity-1 week lag	n/a	(2.0B)
Money Market Flows	4.1B	3.5B
ETF equity:Monthly Totals	Apr.831B	Mar.805B
Baltic Dry Index:	2756	2468	11700	663
Bullish %:	54	55	88	2
Insider Corporate Sellers:	14:1	18:1	108:1	2.4:1

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: 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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AUGHT FOR NAUGHT: