LET'S GET READY TO RALLY!:

If CON is the opposite of PRO, is Congress the opposite of Progress? Set to go on recess August 6, we can expect the markets to excel ( helped by the fact that they usually go on recess during Holidays when people are feeling good about things). Congressional gridlock also seems to help markets, as Congress fails to inhibit them.
Thanks to last week's two day huge rally, the SPX is back in the upward trend channel, with 1420 the current upper band. Changes in the Sentiment Indicators were miniscule, with the AAII Bears increasing  a bit (as did the Bulls!). Mutual Fund equity flows were basically unchanged - the first time since June 1 that they were not negative. Money market flows made a huge reversal from negative $12B to positive $16B.
Here are the numbers:
 

Date>		7/27/2012	7/20/2012
Indices:	DJIA	13075	12822
	NAZ	2958	2925
	SPX	1385	1362
NASD/NYSE	WklyVolume (Bshs).	9.0/4.1	8.4/3.8
nasd/nyse	Specul.Ratio hi=bullish	2.19	2.21
Sentiment:	put/call-CBOE	68	69
Barron's	VIX>50-alltmlow=8.8	16.7	16.3
	Advance/Dec-NYSE..	1893/1269	1679/1470
	Weekly Net:	624	209
	Cumulative:	137843	137219
Weekly	NYSE hi/low	411/190	520/102
New Hi's/Low's	Nasdaq h/l	138/255	242/164
McClellan	Oscillator	16	1
McClellan Sum	.+750/-1000	544	668
Newsletter	Inv.Intel -Bull:tues	40.4	43.6
Surveys	Bear:-5yrs	26.6	24.5
	AAII  -Bull :wed.	28.1	22.2
	Bear	43.1	41.8
COT:Change w/w	large/small (net)k	(2)/(14)	3/(12)
CEOinsider	selling	15:01	17:1
BalticDryIndex	GlobalEcon
3-box rev	Bullish%-	61	61
US equity -ICI	Fund Flows	1 wk lag	0
MMF flows	Change in $B	16.2B	(12.2B)
MargDebt- top (300M)	monthly
ETF:Eqty/Int'l/Bond	million$$ .
2-yr Tsy Yield: Inflation		0.26%	0.21%

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

Subscribe in a reader

LET'S GET READY TO RALLY!: