TW3

Old timers remember TW3 - "That Was The Week That Was" - from the previous Century. It certainly was for the stock market - the largest first week decline in the 200-year history of U S stocks since the Buttonwood Agreement in the early 1800s.

The question now is - after 7 years of a Fed-led Bull market, how deep does this or any future correction/Bear market go. It looks like a Recession -global and domestic- are in order, and 7.5 years is the usual time between R's. Should one exit or hedge the market? Depends on your timeframe and goals: Retirement or current income.

Short term Sentiment says oversold, looking for at least a pause - Bullish % at a low of 36% (Aug. was 25); CBOE put/call ratio at 80 ( fear) as does the VIX and the AAII Bull/Bear newsletter show. 
More than 50% of the S&P500 stocks are in a Bear market - off 20% from there highs.
Here are the numbers:

Date>	2016	1/8/2016	1/1/2016
Indices:	DJIA	16346	17426
	NAZ	4643	5007
	SPX	1922	2043
WklyVolume (Bshs).	naz/ny….	11.0/5.3	5.3/2.5**
Specul.Ratio hi=bullish		2.08	2.12
Sentiment:	put/call-CBOE	80	73
VIX>50-alltmlow=8.8		27	18.2
Advance/Dec-NYSE..		725/2502	1128/2090
Weekly Net:		-1777	-962
Cumulative:		158333	160110
Weekly	NYSE hi/low…	162/665	150/93
New Hi's/Low's	Nasdaq h/l	67/546	143/183
McClellan	Oscillator	-66	9
McClellanSum	.+750/-1000	-178	-20
Newsletter	Inv.Intel -Bull	34.7	36.7
Surveys-Tues	Bear:-5yrs	31.6	29.6
Wed.	AAII  -Bull	22.2	25.1
	Bear	38.3	23.6
US$-WSJ		98.5	98.7
CEOinsider	selling	Finance	Finance
3-box rev	Bullish%-	36	56
US equity -ICI	Fund Flows	WeekLate	(6.0B)
MMF flows	Change in $B	(24.4B)	16B
MargDebt- top (300M)	monthly
2-yr Tsy Yield: Inflation		0.93%	1.06%
TIP (ETF)	Inflation	110.4	109.7

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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TW3