WILD WEEK

I knew if I went on vacation to San Diego for a week the market would go crazy - especially during this critical Sept.-Oct. span. Luckily, even with a few Sentiment and breadth extremes, my current investment strategies - DITM and especially Leaps are not directly affected. I shall be giving a talk on these this Saturday at the SF Option Group monthly meetup at Ft. Mason - 9 a.m. BLDG C (Rm.235) for local readers.

The overdue correction brought a few extreme readings in the last two posts - the previous week's unavailable (n/a) are updated today:
NYSE Volume increased as expected; also the CBOE put/call ratio and VIX did as well. Breadth (advance/declines) were negative for the fourth week - mutual fund outflows reached 6 straight weeks. The McClellan Oscillator was below -50, which again failed to see a buy signal today, and the Summation is at a recent low - hopefully support. Incidentally, Tom McClellan will be presenting at the TSAA annual seminar this month - please see my Examiner.com column if interested in attending:   http://www.examiner.com/stock-market-in-san-francisco/brent-leonard.

Finally, the 2-year Treasury yield dropped dramatically- all numbers are below:

Date>		10/10/2014	10/2/14*
Indices:	DJIA	16544	17010
	NAZ	4276	4481
	SPX	1906	1968
WklyVolume (Bshs).	naz/ny	11.3/4.2	10.0/4.1
Specul.Ratio hi=bullish		2.69	2.44
Sentiment:	put/call-CBOE	72	65
VIX>50-alltmlow=8.8		21.2	14.6
Advance/Dec-NYSE..		801/2453	1235/2012
Weekly Net:		-1652	-777
Cumulative:		160251	161126
Weekly	NYSE hi/low	103/565	92/445
New Hi's/Low's	Nasdaq h/l	80/549	105/410
McClellan	Oscillator	-61	-53
McClellanSum	.+750/-1000	-475	-272
Newsletter	Inv.Intel -Bull:tues	45.5	47.5
Surveys	Bear:-5yrs	14.1	15.1
	AAII  -Bull :wed.	39.9	35.4
	Bear	31	30.9
COT:SPX w/w	large/small (net)k	(7k)/24k	n/a
COT:gold  comm.hedg	long-short.000	(63k)
CEOinsider	selling	40:1	52:1
off.&bd b/s.vs.	10% holder b/s	175:40	175:40
3-box rev	Bullish%-	61	65
US equity -ICI	Fund Flows	WeekDelay	(4.1B)
MMF flows	Change in $B	17.0B	22.8B
MargDebt- top (300M)	monthly		463B
ETF:mthlyEqty/	Int'l/Bond-$B		1141/454/281
2-yr Tsy Yield: Inflation		0.43%	0.57%

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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WILD WEEK