Volume was high last options expiry week, but the Nasdaq divided by NYSE ratio was low (Bearish); also Bearish FOR the market was the toppy Bullish %, at 84, now near its multi-year high of 88. Domestic Equity mutual fund flows swung dramatically last week (year-end adjusting) from $25B inflows to $33B outflows; as for the Sentiment side, Investor Intelligence Bulls crept even higher, above 50%.
For readers who have followed my recent DITM (deep-in-the-money covered call option strategy), they can do so at http://ditmcalls.blogspot.com and read about my recent trade earning an ANNUALIZED 21.4% on Mattel. It's a new variation on a theme capturing annual dividends with the calls, rather than quarterly.
Here are the numbers for last week - Happy Holidays to all:
| MktSentiment | Last Week | Prev. Week | 5 Yr HI | 5 Yr LOW |
| DJIA: | 11491 | 11410 | 14093 | 6626 |
| Nasdaq: | 2642 | 2637 | 2805 | 1114 |
| S&P 500: | 1243 | 1240 | 1561 | 683 |
| CBOE Eq. put/call: | 50 | 46 | 96-10/08 | 46-1/03 |
| VIX: | 16.1 | 17.6 | 90 | 8.8 |
| McClellan Osc: | 1 | 9 | 108 | (123) |
| McClellan Sum: | 411 | 436 | 1568 | (1514) |
| Newsletter Surveys | ||||
InvestorsIntel.Bull: | 56.8 | 56.2 | 63 | 22.21 |
InvestorsIntel.Bear: | 20.5 | 21.3 | 54.4 | 16 |
AAII Bull: | 50.2 | 53.0 | n/a | n/a |
AAII Bear: | 27.1 | 22.6 | n/a | n/a |
| US Equity-1 week lag | n/a | (2.7B) | ||
| Money Market Flows | (33.2B) | 25.3B | ||
| Baltic Dry Index: | 2000 | 2111 | 11700 | 663 |
Bullish %: | 84 | 82 | 88 | 2 |
| Insider Corporate Sellers: | 19:1 | 38:1 | 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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