Monday, October 25, 2010


It appears that the next hi-tech breakthrough in Sentiment is based on Twitter analysis - for further research, see If there is a way to quantify this for the market, it may be the next one to be added to the list of Indicators.

Until then, however, we have to rely on the old stodgy ones - this week saw the near record high Insider Sellers (of 93 to 1) fall back to a still high 28 Sellers to Buyers by CEOs,; Inv.Intell. Bears was the lowest since the FlashCrash week of May 7. And while my cumulative A/D total is at another record level, it has slowed down - the Bullish % of stocks on a Buy signal is also in dangerously high territory, at 73%.   Although the VIX is at its lowest since just before aforementioned FlashCrash (breaking below the 19 level), the CBOE Equity put/call ratio zoomed up to 67 from 52. Mutual funds lost a high number of $$, at $17B (doh).

Since a few people who follow my DITM strategy ( a low-risk covered call plan to replace zero rates), I have started a "sister" blog on which I have not only placed 2009 and 2010 (YTD) favorable results when annualized, but shall continue to update as stocks get called away, or options rolled out. The blog is called:, if you choose to follow it. If the reader wants to be e-mailed on updates, they can request it from my at, since it will be sporadic, not weekly as the Sentiment blog is.

Here are the Sentiment numbers for last week:

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:118311761561683
CBOE Eq. put/call: 675296-10/0846-1/03
McClellan Osc:(1)(1)108(123)
McClellan Sum:9239521568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a(.6B)
Money Market Flows(17.0B)(5.8B)

Baltic Dry Index:2720276911700663
Bullish %:
Insider Corporate Sellers:28:193:1108:12.4:1

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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