Another surprising stat, thanks to this week's Barron's, despite Income Inequality, U.S. households are now at record levels of prosperity -thanks to recovering stocks and housing prices - this stat from the Fed's Flow of Funds, who arranged the above. Although people who work and have pensions, stock options, 401ks, etc. are benefiting from the stock market rise (tripling since 2009), only 10% of stockholders (think CEOs of startups) own 80% of the stocks. And 15% of mortgage-holders are still under water.
Although it is nice to live in a country with a Benevolent Gov't ( Congress looking out for you {r Vote} ), it seems whenever they put their thumb on the Free Market Scale, bad things happen - Soc. Sec., Medicare, Housing Bubbles, (Stock Markets?), College Loans, ad nauseam. I even wonder about San Francisco's enticements to tech companies causing housing and rents to skyrocket (where do the busboys and teachers live?). The average studio apartment rents now for over $3,000/month.
The Stock market continues to be in a Zombie trance, albeit wild daily swings, going nowhere (up less than 1% for the year. As seen in the table below, Volume is not that strong - usually from High Freq. traders the first and last hour of the day. What stands out, however, is the Bull/Bear ratio of the AAII (Individual) inverting to a 20/32 ratio - bullish for stocks. Also notable, the McClellan Summation Index ( collecting advancing versus declining stocks) sank through the zero line. "Bears" watching for the near future. Finally, commodities smart money are still quite short.
Here are last week's numbers:
| Date> | 6/12/2015 | 6/5/2015 | |
| Indices: | DJIA | 17898 | 17849 |
| NAZ | 5051 | 5068 | |
| SPX | 2094 | 2092 | |
| WklyVolume (Bshs). | naz/ny…. | 8.2/3.6 | 9.0/3.6 |
| Specul.Ratio hi=bullish | 2.28 | 2.5 | |
| Sentiment: | put/call-CBOE | 58 | 59 |
| VIX>50-alltmlow=8.8 | 13.8 | 14.2 | |
| Advance/Dec-NYSE.. | 1442/1801 | 1329/1911 | |
| Weekly Net: | -359 | -582 | |
| Cumulative: | 165857 | 166215 | |
| Weekly | NYSE hi/low… | 212/292 | 189/228 |
| New Hi's/Low's | Nasdaq h/l | 307/120 | 300/140 |
| McClellan | Oscillator | -25 | -39 |
| McClellanSum | .+750/-1000 | -150 | 31 |
| Newsletter | Inv.Intel -Bull | 47.4 | 51.5 |
| Surveys-Tues | Bear:-5yrs | 16.5 | 15.8 |
| Wed. | AAII -Bull | 20.0 | 27.3 |
| Bear | 32.6 | 24.6 | |
| COT:SPX w/w | large/small (net)k | 6k/(28k) | 8k/(16k) |
| COT:gold comm.hedg | long-short.000 | (79k) | (108k) |
| COT:OIL comm.hedg | long-short. | (325k) | (340k) |
| US$-WSJ | 86.3 | 87.5 | |
| CEOinsider | selling | 18:1 | 37:1 |
| off.&bd b/s.vs. | 10% holder b/s | 160/50 | .160/40 |
| 3-box rev | Bullish%- | 61 | 63 |
| US equity -ICI | Fund Flows | WeekDelay | (4.2B) |
| MMF flows | Change in $B | (7.7B) | 3.1B |
| MargDebt- top (300M) | monthly | APR.: | 507B |
| ETF:mthlyEqty/ | Int'l/Bond-$B | APR.: | 1256/519/318 |
| 2-yr Tsy Yield: Inflation | 0.73% | 0.72% | |
| TIP (ETF) | Inflation | 111.67 | 111.4 |
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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