Monday, July 25, 2011


How about we start the Cap and Cut of the Budget by halting paychecks for the President and Congress? It worked for California.How about snugging up interest rates? According to the AIER, the nearly $20T in interest rate sensitive securities have cost $587B in consumption and 4 1/2 million jobs.

So far, stocks and Treas are calling Congress' bluff - both up for last week. Speculative NASD to NYSE Volume is at a recent record high; most other indicators regressed to the mean. The McClellan Oscillator is hovering around the zero line, as Tom is calling for a short term cycle bottom this week, but lower stocks going into October. Money Market flows reversed from $10B IN to $25B OUT, I know not where. US Mutual equity fund flows have been negative since April 22, when the S&P500 was $1 lower than today - maybe the public isn't that dumb!

Last February I started keeping track of COT (Commitment of Traders) for the S&P500 -during that whole time, including last week :large traders were (slightly) short and small traders (dumb money) long bigtime. Finally, Insider Selling jumped largely, with almost no Buying, to 63:1.

FYI - My book on Zero Rates - Zero (IN)Tolerance - should be out this week in eReader form (except Kindle , so far), at 2/3 the print book price, and updated.

Here are the results of last week:

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:131613431561683
CBOE Eq. put/call: 716296-10/0846-1/03
McClellan Osc:(11)49.9108(123)
McClellan Sum:4975241568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a(4.5B)

Money Market Flows9.7B3.9B

Baltic Dry Index:1367145311700663
Bullish %:
Insider Corporate Sellers:42:158:1235:12.4:1

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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  1. the results are the same than last week, please can you update ?

  2. Still trying to figure that out - I explained it in Monday's blog with the correct numbers. Thanks for the feedback.