Bad Breadth

With stock trading Volume down last week, as expected this vacation time of year, mostly absent were the Buyers, as seen in last week's steady but managed decline. With the starters off this month, the bench players are minding the stores, mostly defensively.

One recent chart I've been watching is the McMillan put/call ratio in Barron's which hit a 12-month (at least) low - a contrary signal, when it turns UP the market should decline in earnest. Sy Harding reports a large number of stocks above the 200 MA (moving average), a Sell signal.

For more commentary, please see my Examiner.com wrapup at:

http://www.examiner.com/stock-market-in-san-francisco/brent-leonard

Here are last week's Sentiment numbers:

Date>		8/9/2013	8/2/2013
Indices:	DJIA	15425	15658
	NAZ	3660	3689
	SPX	1691	1709
WklyVolume (Bshs).
NASD/NYSE		7.9/3.1	8.6/3.6
Specul.Ratio hi=bullish		2.55	2.39
nasd/nyse
Sentiment:	put/call-CBOE	60	58
VIX>50-alltmlow=8.8		13.4	12.0
Advance/Dec-NYSE..		1074/2109	1603/1587
Weekly Net:		-1035	16
Cumulative:		151248	152283
Weekly	NYSE hi/low	383/327	563/194
New Hi's/Low's	Nasdaq h/l	452/70	535/62
McClellan	Oscillator	-32	-4
McClellanSum	.+750/-1000	301	480
Newsletter	Inv.Intel -Bull:tues	51.6	48.4
Surveys	Bear:-5yrs	18.5	19.6
	AAII  -Bull :wed.	39.5	35.6
	Bear	26.6	25
COT:Change w/w	large/small (net)k	10/15	10/13
COT:gold  comm.hedg	long-short.000	-54	-26
CEOinsider	selling	84:1	72:1
3-box rev	Bullish%-	84	84
US equity -ICI	Fund Flows	1weeklag	(.9B)
MMF flows	Change in $B	7.6B	(9.6B)
MargDebt- top (300M)	monthly	JUNE	377B
ETF:Eqty/	Int'l/Bond	JUNE	851/321/244
(Monthly	B$$ .)
2-yr Tsy Yield: Inflation		0.30%	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: 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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Bad Breadth