Monday, December 20, 2010


Moving into the quiet Holiday period, and hopefully a Santa Claus Rally (bet. Xmas and New Year's) only a couple things stand out:
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 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 WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:124312401561683
CBOE Eq. put/call: 504696-10/0846-1/03
McClellan Osc:19108(123)
McClellan Sum:4114361568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a(2.7B)
Money Market Flows(33.2B)25.3B

Baltic Dry Index:2000211111700663
Bullish %:
Insider Corporate Sellers:19:138:1108:12.4:1

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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