Monday, March 31, 2014

Flash Boys

In investing, the best Outcome is Income!

As a contrarian I should not have been surprised that today's market acted opposite from what I thought after 60 Minutes excellent coverage of Michael Lewis's "Flash Buys" interview (and book) on the "rigging" of the stock market by HFTs (High Frequency Traders)! Although many people are addressing this problem, it doesn't really affect long term investors very much, or even swing/position traders; but hopefully, as with the Bitcoin time lag, regulators can fix this inequity.

  More on equity returns at my column:

Sentiment and Breadth extremes last week included the monthly figures of ETF flows, all increasing to recent record highs: domestic equity, Int'l, and Bonds, although MMF (money market) outflows lessened. Margin debt again hit new highs, but as reported elsewhere, this is a common occurrence (until it doesn't). As shown below, most other indicators are within range:

Date> 3/28/2014 3/21/2014
Indices: DJIA  16323 16302
  NAZ  4155 4276
SPX  1857 1866
WklyVolume (Bshs). naz/ny 11.4/3.6 10.5/4.4
Specul.Ratio hi=bullish 3.17 2.39
Sentiment: put/call-CBOE  61 57
VIX>50-alltmlow=8.8 14.4 15
Advance/Dec-NYSE.. 1485/1713 1940/1258
Weekly Net: -228 682
     Cumulative: 157313 157541
Weekly  NYSE hi/low 213/64 337/65
New Hi's/Low's Nasdaq h/l 161/110 350/59
McClellan  Oscillator -10 -12
McClellanSum .+750/-1000 768 897
Newsletter Inv.Intel -Bull:tues 54.7 52
Surveys Bear:-5yrs 17.5 17.4
AAII  -Bull :wed. 31.2 36.8
Bear  28.6 26.1
COT:SPX w/w large/small (net)k 7k/24k 9k/(31k)
COT:gold  comm.hedg long-short.000 (127k) (146k)nh
CEOinsider selling 25:1 25:1
off.&bd b/s.vs. 10% holder b/s 200:40 140:50
3-box rev Bullish%-  72 76
US equity -ICI Fund Flows WeekDelay (3.8B)
MMF flows Change in $B (3.2B) (31B)
MargDebt- top (300M) monthly  466B
ETF:mthlyEqty/ Int'l/Bond-$B 1035/397/266
2-yr Tsy Yield: Inflation 0.45% 0.45%
InsiderTotal: 50exer.

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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