LABOR DAY

Labor Day - the day no one works ! As Art Hoppe  said in the S F Chronicle 50 years ago, a day invented by unions to make sure people work less, get paid more. It seems to be "working", as the number of people in the workforce is at a decades low, in spite of the gov't increasing at all levels - the S F gov't staff is 30,000, or 1 for every 300 residents.

Despite the many fears for the stock market success - Election, calendar weakness (Sept.& Oct.), Brexit, etc.- some things are positive. The Barron's Option column reports very low Volatility in options ( a sign of complacency); fund flows in Bear funds have sold, making for more cash available to buy, while Bull funds are flat. Wall of Worry: EVERYONE who is anyone is Bearish for at least a Correction: Jim Grant, Bill Gross, Icahn, Soros, Jim Rogers, S. Pomboy e.g.

Despite the second longest Flat market since '09, the fear of a rate hike has diminished short term. But this is the first Bull driven, not by earnings, but Fed easing, of the 5 in 40 years. NIRP ??

Breadth remains strong (New Highs), but Volume weak; bigtime $$ left MMFs to MUF (mutual);
 monthly Margin debt increased, almost to all time highs - from April '15.

I'll be vacationing (zigging while the masses have zagged already) for the next few weeks.

Here are the Sentiment numbers:

Date>		9/2/2016	8/26/2016
Indices:	DJIA	18492	18395
	NAZ	5249	5218
	SPX	2179	2169
WklyVolume (Bshs).	naz/ny….	7.7/4.1	7.9/3.7
Specul.Ratio hi=bullish		1.88	2.14
Sentiment:	put/call-CBOE	65	67
VIX>50-alltmlow=8.8		12	13.7
DeltaMSI-50%	MAC crossover	70%	73%
Advance/Dec-NYSE..		2086/1028	1413/1707
Weekly Net:		1058	-294
Cumulative:		173368	172310
Weekly	NYSE hi/low…	404/34	409/29
New Hi's/Low's	Nasdaq h/l	362/75	364/75
McClellan	Oscillator	-1	-35
McClellanSum	.+750/-1000	788	878
Newsletter	Inv.Intel -Bull	55.9	56.7
Surveys-Tues	Bear:-5yrs	20.6	20.2
Wed.	AAII  -Bull	28.6	29.4
	Bear	31.5	29.6
US$-WSJ		95.9	94.7
3-box rev	Bullish%-	76	76
US equity -ICI	Fund Flows	WeekLate	(4.5B)
MMF flows	Change in $B	(10.5B)	24.6
MargDebt- top (300M)	monthly	475B
10-yr Tsy yield	hi= stock buying	1.60%	1.63%
2-yr Tsy Yield: Inflation		0.79%	0.85%
TIP (ETF)	Inflation	115.5	116.5

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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LABOR DAY