Monday, November 7, 2011

HALLOWE'EN "FREQ" SHOW:

High Frequency Traders (HFTs) have caused the highest correlation among stocks and sectors in decades, negating much of both Fundamental and Technical Analysis. This was shown in the October rally where shorts were dashing to cover everything pinned on the edgy European situation.  Sentiment still has predictive value, especially my favorite ones: McClellan Oscillator, Bullish %, and CBOE put/call ratio - all divining the rally.
This week extremes include the put/call ratio , high, at 76 (Bullish), but the Bullish % and Insider Selling also high (Bearish). Here are the numbers:

MktSentiment Last WeekPrev. Week 5 Yr HI 5 Yr LOW
DJIA:1198312234140936626
Nasdaq:2686273728611114
S&P 500:125312851561683
CBOE Eq. put/call: 765996-10/0846-1/03
VIX:30.124.5908.8
McClellan Osc:2277108(123)
McClellan Sum:6535461568(1514)
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InvestorsIntel.Bull:
43.240.06322.21
InvestorsIntel.Bear:
36.837.954.416
AAII Bull:
40.243.0n/an/a
AAII Bear:
29.625.0n/an/a
US Equity-1 week lagn/a(3.2B)
Money Market Flows(12B)(0)

Baltic Dry Index:1817215311700663
Bullish %:
7477892
Insider Corporate Sellers:35:129:1235:12.4:1

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: 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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