Monday, June 20, 2016


According to the Wisdom of Crowds, the U K should exit the EU on Thursday (our Wednesday night 11 to 1?); but the seeming reversal due to the assassination , and the fact that polls got it wrong in Scotland and Canada prior times, the Brits could Bremain, probably lifting both the European and U S markets with relief. Also, fund managers' cash is at a  high level, usually Bullish as well.

My new Indicator, the Delta MSI (stocks on Buy signals from moving average crosses) is echoing the old one of Bullish % - stocks on BUY signals. After an ugly two weeks in the markets, today's rally is no surprise. MMF flows were out of Money Markets bigtime, and the AAII Bears jumped 10 points - see below:

Date>   6/17/2016 6/10/2016
Indices: DJIA  17675 17865
  NAZ  4800 4894
SPX  2071 2096
WklyVolume (Bshs). naz/ny…. 9.9/5.7 8.5/4.3
Specul.Ratio hi=bullish 1.74 1.98
Sentiment: put/call-CBOE  72 67
VIX>50-alltmlow=8.8 19.4 17
DeltaMSI-50% MAC crossover 67% 74%
Advance/Dec-NYSE.. 1164/1990 1576/1589
Weekly Net: -826 -13
     Cumulative: 167487 168313
Weekly  NYSE hi/low… 270/83 513/37
New Hi's/Low's Nasdaq h/l 145/182 255/108
McClellan  Oscillator -28 -13
McClellanSum .+750/-1000 783 990
Newsletter Inv.Intel -Bull 45.9 47.3
Surveys-Tues Bear:-5yrs 23.5 23.8
Wed. AAII  -Bull  25.4 27.8
Bear  37.5 27.8
US$-WSJ 94.1 94.7
3-box rev Bullish%-  67 72
US equity -ICI Fund Flows WeekLate (1.0B)
MMF flows Change in $B (18.6B) (5.7B)
MargDebt- top (300M) monthly 
10-yr Tsy yield hi= stock buying 1.61% 1.64%
2-yr Tsy Yield: Inflation 0.70% 0.73%
TIP (ETF) Inflation 115.4 115.8

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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