Monday, January 31, 2011


I have been invited to speak at 3 venues in February on a 10-year analysis of the most effective Sentiment Indicators at market reversals, as well as the defensive, yet lucrative, investment strategy outlined in my book -Zero (IN)Tolerance: deep-in-the-money covered calls.

This Thursday, Feb.3, at the Orinda Library, the AAII (one of my contrary indicators) is hosting the talk; the TSAA is hosting a joint meeting at Golden Gate Univ. on Tues.,Feb.15 at 3 p.m. in San Francisco; and the GGU Library is featuring my talk in a Learning Program on Wed., Feb.23 at 5:30 also at GGU.

Once again the recent indicator extremes of: Bull/Bear surveys, negative McClellan Oscillator, low put/call and VIX numbers, etc. have at least called a temporary cessation of the upmove in the markets (Nasdaq), despite the sugar highs of QEII and zero interest rate alternatives.

Once again money is trickling out of MMFs and sticking a toe into domestic equity funds for the first time since April of 2010.

Here are the numbers:

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:127612831561683
CBOE Eq. put/call: 605496-10/0846-1/03
McClellan Osc:(24)(29)108(123)
McClellan Sum:5405511568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a3.0B
Money Market Flows(3.8B)(35B)

Baltic Dry Index:1137139311700663
Bullish %:
Insider Corporate Sellers:10:1198:1198:12.4:1

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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