Monday, February 13, 2017


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: 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

Subscribe in a reader


No comments:

Post a Comment