Monday, November 15, 2010


A leading magazine last week reported the Chinese Premier displaced Obama as the number 1 powerful figure in the world, to paraphrase Abbott and Costello's famous debate - this is the biggest "first" since the U.S sent Rice (Condoleezza) to China.

After a weak week in the markets, the G20 meetings seem to have reversed most of their directions, Sentiment is inconclusive: the McClellan Oscillator swung mightily from a +35 to minus 57 (oversold), yet the AAII Bulls went to a new multi-year high of 57%. Insider selling is huge , for 4 out of the past 5 weeks, although they were exactly wrong last time it exceeded 100:1 in April of '09, before the long rally.

I'm testing a variation of a new indicator -speculation- based on dividing Nasdaq Volume by NYSE, since 53% of the latter is now interest-rate type securities, whereas Nasdaq is more of the market. High readings are Bullish.

Here are last week's numbers:

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:119912251561683
CBOE Eq. put/call: 575196-10/0846-1/03
McClellan Osc:(54)35108(123)
McClellan Sum:8689311568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a(1.1B)  
Money Market Flows2.2B(6.6B)

Baltic Dry Index:2454260011700663
Bullish %:
Insider Corporate Sellers:79:160:1108:12.4:1

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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