Thursday, August 23, 2012


Due to an early start of a vacation (along with the rest of the world), here is an abbreviated Sentiment update: specifically newsletter surveys that come out mid-week.
Since rising to the April 2 high on the SPX of 1422 it again hit that  number Monday with a Candlestick Hammer. Despite that the Inv.Intell. Bull/Bear, and especially the AAII one are both getting stretched to the complacency side. Both the McClellan Oscillator and Summation are only halfway to a speculative top yet; the Bullish % is getting close to a top.
Followers of my DITM (deep-in-the-money) covered call strategy can see how one can make a profit even if the stock drops, at:
DITM is IMO the optimal strategy in a sideways to down market, which has been the case since the October '07 high, and probable future. More also at:
Here are the numbers:

8/23/12thurs 8/17/2012
Indices: DJIA  xxx 13275
NAZ  xxx 3076

SPX  xxx 1418
NASD/NYSE WklyVolume (Bshs). 8.0/2.8
nasd/nyse Specul.Ratio hi=bullish xx 2.86
Sentiment: put/call-CBOE        xx 61
Barron's VIX>50-alltmlow=8.8 13.5

Advance/Dec-NYSE.. xx 1995/1157

Weekly Net: xx 838

     Cumulative:  xx 139955
Weekly  NYSE hi/low xx 359/45
New Hi's/Low's Nasdaq h/l xx 190/125
McClellan  Oscillator -9 29
McClellan Sum .+750/-1000 667 656
Newsletter Inv.Intel -Bull:tues 47.3 43.6
Surveys Bear:-5yrs 24.7 26.6

AAII  -Bull :wed. 42 36.8

Bear  25.9 28.1
COT:Change w/w large/small (net)k 1/(1)
CEOinsider selling
BalticDryIndex GlobalEcon
3-box rev Bullish%-  70 70
US equity -ICI Fund Flows 1 wk lag 1 wk lag
MMF flows Change in $B
MargDebt- top (300M) monthly  JUNE: 284 B
ETF:Eqty/Int'l/Bond  million$$ . JUNE: 686/258/222
2-yr Tsy Yield: Inflation 0.28% 0.30%

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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