Monday, January 9, 2017


In the past Century Joseph Schumpeter advanced the theory of Creative Destruction, in which it takes breaking an egg to make an omelet. Present Donald Trump seeks to do the same, in many venues.
Over the year end break fund flows from MMFs reversed from  $16B Inflows to #11B Outflows in January's first week. Per Schwab's great Research team, last year saw the greatest exit from equity mutual funds in a decade, mostly into ETFs (probably Index).
Sentiment wise, the Bulls are running, for the I I and the AAII, with Investors' Intelligence just over 60. This overconfidence might not bode well for the immediate future. All else seems normal:

Date 1/6/2017 12/30/2016
Indices: DJIA  19963 19762
NAZ  5521 5383
SPX  2277 2238
WklyVolume (Bshs). naz/ny…. 7.2/3.6 5.3/2.5
Specul.Ratio hi=bullish 2 2.12
Sentiment: put/call-CBOE  67 65
VIX>50-alltmlow=8.8 11.3 14
DeltaMSI-50% MAC crossover 69.8 68%
Advance/Dec-NYSE.. 2369/724 1223/1868
Weekly Net: 1645 -645
     Cumulative: 172190 170545
Weekly  NYSE hi/low… 360/27 228/6
New Hi's/Low's Nasdaq h/l 362/67 325/125
McClellan  Oscillator 21.4 -8
McClellanSum .+750/-1000 577 462
Newsletter Inv.Intel -Bull 60.2 60.2
Surveys-Tues Bear:-5yrs 18.4 18.4
Wed. AAII  -Bull  46.2 45.6
Bear  25.2 25.7
US$-WSJ 103 102.4
3-box rev Bullish%-  72 70
US equity -ICI Fund Flows WeekLate 0.7B
MMF flows Change in $B (11.3B) 15.9B
MargDebt- top (300M) monthly  500B November
10-yr Tsy yield hi= stock buying 2.42 2.46%
2-yr Tsy Yield: Inflation 1.21 1.22%
TIP (ETF) Inflation 113.5 113.1

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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