Monday, January 9, 2012


As the old saying goes (Observable, but not Actionable) : So goes the first week of January - so goes the month; so goes January, so goes the year! Of course, a la the Heisenberg principle - since the year contains the month, it has a nice running start.
Sentiment Indicators are running a little hot lately - not quite calling for a reversal, but approaching overbought conditions: The VIX is down to 20; the AAII  Bears dropped from 30 to under 20! MMF flows went negative for the first time since November. Bullish % is nearing a high level, where previous tops have occurred, although 88% is the highest high.
The herd-like media is finally all aflutter about zero interest rates penalizing prudent investors, and I have been asked to revisit my DITM covered call strategy at the upcoming SF Options Group meeting on Jan.21 at Fort Mason. After successfully testing this plan for nearly three years, giving several Bay Area talks and even writing a book on it, people are finally seeing the value of it - @10% annualized returns, WITH a Safety Net. If interested for a portion of one's assets, please visit for more information.
Here are the Sentiment numbers:

1/6/2012 12/30/2011
Indices: DJIA  12359 12217
NAZ  2674 2605

SPX  1277 1257
NASD/NYSE WklyVolume (Bshs) 3.2/6.9 2.2/4.6
nasd/nyse Specul.Ratio hi=bullish 2.16 2.10
Sentiment: put/call-CBOE  63 67
Barron's VIX>50-alltmlow=8.8 20.6 23.4

Advance/Dec-NYSE 2213/947 1218/1896

Weekly Net: 1266 -678

     Cumulative: 126533 125267
Weekly  NYSE hi/low 305/27 295/72
New Hi's/Low's Nasdaq h/l 118/81 92/161
McClellan  Oscillator 29 24
McClellan Sum .+750/-1000 395 240
Newsletter Inv.Intel -Bull:tues 49.5 50.5
Surveys Bear:-5yrs 30.5 29.5

AAII  -Bull :wed. 48.9 40.6

Bear  17.2 30.8
COT:Change w/w large/small (net)k 12/5. 7/7.
CEOinsider selling 30:1 18:1
BalticDryIndex GlobalEcon 1426 1888
3-box rev Bullish%- 68 ..63buy
US equity -ICI Fund Flows 1 wk lag (4B)
MMF flows Change in $B (1.9B) 2.6B
MargDebt- top (300M) monthly OCT.
ETF:Eqty/Int'l/Bond  million$$ OCT.
2-yr Tsy Yield: Inflation 0.27% 0.25%
Euro futures 1 yr.offset-CommHedg 5.13M 5.04M

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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