DIALECTICS

One of the most profound and useful concepts I've found, which apply to so many things - such as today's political, racial, Congressional, and nationalistic divides- is Dialectic: put forth recently by Hegel, and Chalybaus, -that  Thesis, when countered by Antithesis, should result in a better Synthesis. Taking the better parts of both sides and merging them into a better way!

So far... the new environment has been beneficial for the stock market--until it's Not. Stocks are pushing up against high valuations, number of years (both bond and stocks), debt and market % of GDP, etc.  Even margin debt at low rates is dangerous.

But Sentiment and breadth show no sign of weakness yet. $$ flows out of MMFs into stock MUFs and ETFs; Inflation contained and Volatility low. Here are the numbers:

Date		2/10/2017	2/3/2017
Indices:	DJIA	20269	20071
	NAZ	5734	5666
	SPX	2316	2297
WklyVolume (Bshs).	naz/ny….	9.3/4.1	9.8/4.6
Specul.Ratio hi=bullish		2.27	2.13
Sentiment:	put/call-CBOE	67	71
VIX>50-alltmlow=8.8		10.9	11
DeltaMSI-50%	MAC crossover	68.5	71.3
Advance/Dec-NYSE..		1974/1115	1914/1184
Weekly Net:		859	730
Cumulative:		174671	173812
Weekly	NYSE hi/low…	379/44	331/57
New Hi's/Low's	Nasdaq h/l	423/110	350/125
McClellan	Oscillator	27	18
McClellanSum	.+750/-1000	686	654
Newsletter	Inv.Intel -Bull	62.7	61.8
Surveys-Tues	Bear:-5yrs	16.7	17.6
Wed.	AAII  -Bull	35.8	32.8
	Bear	27.7	34.2
US$-WSJ		100.7	99.7
3-box rev	Bullish%-	71	71
US equity -ICI	Fund Flows	WeekLate	11.8B
MMF flows	Change in $B	(3.2B)	(5.7B)
MargDebt- top (300M)	monthly		490B
10-yr Tsy yield	hi= stock buying	2.4	2.5
2-yr Tsy Yield: Inflation		1.2	1.2
TIP (ETF)	Inflation	114.2	113.9

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: 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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DIALECTICS