THE MARKET- OUT OF INTENSIVE CARE;

but still in the hospital! Hopeful signs of recovery are being shown in some of the Sentiment Indicators: my newest indcator - NASD Volume (speculation) divided by NYSE Volume is down from the 2 handle; CBOE Equity put/calls have leaped from 57 2 weeks before to 86 last week; the McClellan Oscillator is below my oversold benchmark of -50 at -68. Also, the AAII Bull/Bear ratio is fearfully nervous at 24 to 47!

Another new indicator I've been following is COT, or commitment of traders - specifically large speculators vs. small. Large ones (the smart money) hit a high shorting number not seen since the March rally this spring.

Finally, although the (legal) Insider Selling is quite high but not record, what stands out is the Tech Sector selling - HUGE.

As many of you know, I've been successfully testing a deep-in-the-money covered call /defensive investing strategy for over two years, achieving at least historic market returns (10-12 %); at last, in the past two weeks 2 conservative institutions have validated my plan - Schwab's top option guru - in an investment letter; and Nuveen,,with 3 closed-end funds. For more on the strategy, please see brentleonard.com.

Here are the Sentiment numbers:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11951	12151	14093	6626
Nasdaq:	2643	2732	2861	1114
S&P 500:	1270	1300	1561	683
CBOE Eq. put/call:	86	69	96-10/08	46-1/03
VIX:	18.9	18.0	90	8.8
McClellan Osc:	(68)	(29)	108	(123)
McClellan Sum:	181	458	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	n/a	n/a	63	22.21
InvestorsIntel.Bear:	n/a	n/a	54.4	16
AAII Bull:	24.4	30.2	n/a	n/a
AAII Bear:	47.7	33.4	n/a	n/a
US Equity-1 week lag	n/a	(1.0B)
Money Market Flows	15.9B	(21.9B)
Baltic Dry Index:	1418	1489	11700	663
Bullish %:	64	72	89	2
Insider Corporate Sellers:	48:1	44:1	235:1	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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THE MARKET- OUT OF INTENSIVE CARE;