Monday, May 27, 2013


Green is a popular color these days (Go Ducks!), whether it is to save the planet - which appears to be too late, judging from tornadoes, extreme rain and snow in summertime - or whether it is the color of stocks going up, versus Red going down. We saw a little Red last week resulting in MMFs (money markets) gaining $20B in assets, unlike the week before where it lost a mere $1B.

Declining stocks posted a rara avis with over one thousand more declining on the NYSE than advancing - this sent the McClellan Oscillator down near the BUY area at minus 41, although its cumulative Summation is still above the healthy level of +1,000.

Bull/Bear newsletter surveys showed increasing complacency - Investors' Intelligence at a high 55% Bulls, and the AAII Bulls jumping from 38 to 49% week/week. Bears continue to hibernate. Both levels of Stocks on a Buy signal (Bullish %), and new highs remain strong.

 Money flowing into ETFs (Exchange Traded Funds) continues to increase - even into Bonds. What appears dangerous is the recent reporting of Margin Interest: $384B- a new record, by my reckoning. Maybe it's "Different This Time" due to zero interest rates!

5/24/2013 5/17/2013
Indices: DJIA  15303 15354
  NAZ  3459 3498

SPX  1649 1667
WklyVolume (Bshs).

NASD/NYSE   8.9/3.6 9.0/3.6
Specul.Ratio hi=bullish 2.47 2.50

Sentiment: put/call-CBOE  62 53
VIX>50-alltmlow=8.8 14.0 12.5
Advance/Dec-NYSE.. 1089/2077 1865/1332
Weekly Net:
-988 533
     Cumulative: 153264 154252
Weekly  NYSE hi/low 851/81 914/74
New Hi's/Low's Nasdaq h/l 519/59 582/63
McClellan  Oscillator -41 16
McClellanSum .+750/-1000 1117 1192
Newsletter Inv.Intel -Bull:tues 55.2 54.2
Surveys Bear:-5yrs 18.8 19.8

AAII  -Bull :wed. 49 38.5

Bear  21.6 29.3
COT:Change w/w large/small (net)k 3/20 5/17
CEOinsider selling 50:1 57:1
3-box rev Bullish%-  89 89nh
US equity -ICI Fund Flows 1weeklag .1B
MMF flows Change in $B 19.5B (1B)
MargDebt- top (300M) monthly  384nh
ETF:Eqty/ Int'l/Bond 854/355/258
Assets in  Billion$$ .

2-yr Tsy Yield: Inflation 0.25% 0.25%

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

Subscribe in a reader


No comments:

Post a Comment