LABOR OF LOVE

Labor Day usually marks the end of the summer doldrums, with the usual suspects of fiscal year end, Congress reconvening, etc., and with added Volatility anticipated from debt ceiling, Syria, on top of a tired stock market cyclical Bull now into its 5th year, September may again become the year's worst - contrary to T.S. Elliot.

 The S&P 500 and the Nasdaq (when it's open) have been in a Yin/Yang struggle, first monthly, more recently weekly ups and downs. After last week's turmoil the VIX closed at a recent high of 17; and the McClellan Oscillator in the minus zone. My latest Indicator- McMillan's CBOE equity put/call ratio- is on a SELL mode. Margin debt is near an all-time high - $382B, but Insiders have slowed down on Selling, as have the Large COT traders in the SPX. Also on the COT (Commitment of Traders), Gold commercials have increased their shorts, coming off an 11-year low. The Inflation harbinger - the 2-year TSY- equalled its recent high yield of .40%!!

What is strange is ETFs have seen INFLOWS in stocks, Int'l AND Bonds month over month. Here are the numbers for last week:

Date>		8/30/2013	8/23/2013
Indices:	DJIA	14810	15010
	NAZ	3589	3657
	SPX	1632	1663
WklyVolume (Bshs).
NASD/NYSE		7.0/3.1	6.5/.3.1
Specul.Ratio hi=bullish		2.26	2.10
nasd/nyse
Sentiment:	put/call-CBOE	62	59
VIX>50-alltmlow=8.8		17.0	14.0
Advance/Dec-NYSE..		822/2368	1922/1272
Weekly Net:		-1546	650
Cumulative:		148403	149949
Weekly	NYSE hi/low	133/176	122/647
New Hi's/Low's	Nasdaq h/l	197/75	208/98
McClellan	Oscillator	-23	-3
McClellanSum	.+750/-1000	-325	-219
Newsletter	Inv.Intel -Bull:tues	38.1	43.3
Surveys	Bear:-5yrs	23.8	21.6
	AAII  -Bull :wed.	33.5	29
	Bear	30.7	42.9
COT:SPX w/w	large/small (net)k	4/-12	7/-1
COT:gold  comm.hedg	long-short.000	-88	-68
CEOinsider	selling	19:1	17:1
3-box rev	Bullish%-	76	79
US equity -ICI	Fund Flows	1weeklag	(.4B)
MMF flows	Change in $B	6.5B	15.4B
MargDebt- top (300M)	monthly	382B	JULY
ETF:Eqty/	Int'l/Bond	925/335/250	JULY
(Monthly	B$$ .)
2-yr Tsy Yield: Inflation		0.40%	0.38%

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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LABOR OF LOVE