Monday, February 21, 2011


For readers in the Bay Area, my string of talks on my DITM covered call investment strategy is ending with a FREE talk at Golden Gate Univ., Wednesday the 23rd at 5:30 P.M. as I prepare for my vacation mode! It has been a fun ride from San Jose to Orinda, but a lot of work - for me and for my Powerpoint man - Jim Norton.

 For more on DITM, please see my other blog:

The market continues its inexorable ride, Bernancke ex machina, up the wall of global worry. The DJIA is up 89% since March '09; the SPX (500) up over 100%; the Nasdaq up 125%, more than decades ago in 1982 (1 year rise) and 1974 (2 year gain).

My new Indicator, speculation as measured by Nasd divided by NYSE Volume, hit a new high, as did my cumulative Adv./Dec. Bullish per cent also hit an all-time high of 89. Money is entering domestic equity mutual funds again after a year of shifting to foreign markets.
I just started following the COT (commitment of traders) this week - should appear when testing is meaningful.

Here are the numbers:

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:134313291561683
CBOE Eq. put/call: 555396-10/0846-1/03
McClellan Osc:3128108(123)
McClellan Sum:8267031568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a4.9B
Money Market Flows5.6B10.2B

Baltic Dry Index:1292113611700663
Bullish %:
Insider Corporate Sellers:52:1125:1198:12.4:1

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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