Monday, July 11, 2011


If Pro is the opposite of Con, is Congress the opposite of Progress? BTW, why do they call them "parties"? As they debate the debt ceiling, the market goes through the floor until Aug.2 (or later). Meanwhile corporations are paralyzed with confusion. Two months ago Key Officer Insider Selling to Buying set a new record of 235:1; last week it popped to 58:1 from 13, with almost no buying in all sectors.
After 2 months of downturn, last week's End-of-Quarter Rally saw improving breadth - my cumulative A/D set a new record high, and NYSE new highs/lows were 366 to 30. The McClellan Oscillator is still overbought at 50%; and newsletters are getting complacent.
Which is why I'm very defensive these days, in the weakest part of the year, with my DITM covered call strategy, which I am updating this Saturday for the SF Bay Area Option Group at Fort Mason. Today's drop has only 3 of my 30 position "temporarily under water". I recommend everyone take a look at this plan for at least a portion of their assets receiving 0% in CDs, MMFs; negative after taxes, Inflation, and a weakening dollar. See for info on DITM - the eBook is currently being formatted.

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:134313391561683
CBOE Eq. put/call: 625796-10/0846-1/03
McClellan Osc:49.990108(123)
McClellan Sum:5242481568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a(3B)
Money Market Flows3.9B(16.9B)

Baltic Dry Index:1453142011700663
Bullish %:
Insider Corporate Sellers:58:113:1235:12.4:1

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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