Monday, October 17, 2011


Of my two trips to wonderful downtown Sunnyvale last week, the one Saturday to hear Price Headley talk for 5 hours on Technical Analysis and Metastock indicators - I believe Price used to work for Bernie Schaeffer, the Sentiment guru, before becoming one of the rising stars in market analysis- was by far the most worthwhile.
The Thursday event with Stan Ehrlich, despite his years of experience and accomplishments, was a non-event. I would recommend the reader to check out for Price's information. At the beginning of the talk he polled the audience of @ 100 how it viewed the 1-month, 6-month and 1-year time frames. At the break, the results were revealed to be most Bullish for all three -with predictions of 1249, 1441, and 1550 on the S&P 500, respectively - I, contrarily, was not among the last two, sharing Martin Pring's Lost Decade scenario for a few more years - hence my DITM strategy (see if unfamiliar).
Speaking of Sentiment, I was surprised Sunday night to see the futures quite positive for Monday's opening, but overnight they slipped into strong negative territory - no doubt due (not) to European uncertainty by the media. The signal I saw for a short term overbought condition was a plus 80 on the McClellan Oscillator - a very reliable Indicator.
Especially after such a strong runup last week. Volume was quite weak on the upturn, and several Bullish Indicators regressed to the mean last week.In fact the Inv.Intell. ratio showed more Bulls than Bears for the first time in over a month. The Bullish % of stocks on a Buy signal leapt from 29 to 55 on the Pt.& Fig. chart, and Insider Selling also jumped from a super low 3:1 to 30:1
Here are the numbers:

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
S&P 500:122411551561683
CBOE Eq. put/call: 667496-10/0846-1/03
McClellan Osc:809108(123)
McClellan Sum:(74)(386)1568(1514)
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AAII Bull:
AAII Bear:
US Equity-1 week lagn/a(4.2B)
Money Market Flows(3B)5B

Baltic Dry Index:2155200011700663
Bullish %:
Insider Corporate Sellers:30:13:1235:12.4:1

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