Monday, March 21, 2016


Is it only coincidence that the richest man in Asia is named Li Ka-shing (as in cash register? Talk about Income inequality. His empire is 15% of the Hong Kong Stock Exchange. A regular Trump.

Normally I use this Facebook space for my Monday stock market Sentiment indicators, but from now on I'll just refer to the numbers at: and save space in the ether.

That said, both breadth (advances/declines, etc.) and sentiment were Bullish last week, with my new Indicator - Delta MSI- hitting 61%. The VIX dropped to 14 ( I strongly recommend hedging one's portfolio with the TVIX, now at its baseline low @$5. It will come in handy if/when the market tanks again. TIPs hit 113 last week, a sigh of Inflation, but no worry at present. 123 was the 2012 high. A recent surge of $40B came out of MMFunds last week.

Coincidence #2: when I started my investment strategy of DITM (deep-in-the-money) covered calls in 2009 (wrote a book - Zero-Intolerance- in 2010) it was two months into a new Bull market in stocks - not the best environment for the plan. However, it has done well in this Zero.Negative Rate time, and is now poised to be the right plan for the coming months - high Volatility, lower stock prices, higher dividends, etc.

I just received an email from a colleague from the SF Options Group that he is giving a presentation on DITM at the Baraban Roundtable on the peninsula.

Date> 2016 3/18/2016 3/11/2016
Indices: DJIA  17602 17213
  NAZ  4795 4748
SPX  2049 2022
WklyVolume (Bshs). naz/ny…. 9.6/6.3 9.5/5.3
Specul.Ratio hi=bullish 1.52 1.79
Sentiment: put/call-CBOE  66 70
VIX>50-alltmlow=8.8 14 16.5
DeltaMSI-50% MAC crossover 61% 58%
Advance/Dec-NYSE.. 2271/907 2087/1104
Weekly Net: 1364 983
     Cumulative: 163624 162260
Weekly  NYSE hi/low… 248/37 203/28
New Hi's/Low's Nasdaq h/l 146/147 104/110
McClellan  Oscillator 60 73
McClellanSum .+750/-1000 917 682
Newsletter Inv.Intel -Bull 44.4 39.4
Surveys-Tues Bear:-5yrs 30.3 35.4
Wed. AAII  -Bull  30 37.4
Bear  26.9 24.4
US$-WSJ 95.1 96.2
3-box rev Bullish%-  76 74
US equity -ICI Fund Flows (.2B) weekLate
MMF flows Change in $B (40B) (1.2B)
MargDebt- top (300M) monthly 
2-yr Tsy Yield: Inflation 0.84% 0.95%
TIP (ETF) Inflation 113.6 111.9

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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