Monday, April 3, 2017

ITEMS OF "INTEREST"

Conventional Wisdom would suggest that since the National Debt has doubled over the past decade, that Interest Rate Hikes to service that debt would be disastrous. Although somewhat true, Barron's' Gene Epstein reports that for the past 60 years the average rate has been ..5.8%; it is now only 2%, and the CBO sees in 30 years (?) it will still only be 4.4%.
Also of "Interest" - in this week's Sentiment numbers, Margin Interest has skyrocketed again to $528B, which will also rise to borrowers when rates do!
As the housewife once said: I can't be broke - I still have checks left!

Here are the numbers:

Date   3/31/17EOQ 3/24/2017
Indices: DJIA  20663 20596
  NAZ  5911 5828
SPX  2362 2343
WklyVolume (Bshs). naz/ny…. 8.8/4.1 9.2/4.3
Specul.Ratio hi=bullish 2.15 2.14
Sentiment: put/call-CBOE  57 71
VIX>50-alltmlow=8.8 12.4 13
DeltaMSI-50% MAC crossover 50.4 53
Advance/Dec-NYSE.. 2292/809 1186/1923
Weekly Net: 1483 -737
     Cumulative: 175366 173883
Weekly  NYSE hi/low… 227/69 218/115
New Hi's/Low's Nasdaq h/l 275/123 300/172
McClellan  Oscillator 36 -9
McClellanSum .+750/-1000 325 222
Newsletter Inv.Intel -Bull 49.5 56.7
Surveys-Tues Bear:-5yrs 18.1 17.3
Wed. AAII  -Bull  30.2 35.3
Bear  37.4 30.5
US$-WSJ 100.6 99.8
3-box rev Bullish%-  73 75
US equity -ICI Fund Flows WeekLate (6.9B)
MMF flows Change in $B 0 (23.3B)
MargDebt- top (300M) monthly  528B 513Bnh
10-yr Tsy yield hi= stock buying 2.4 2.4
2-yr Tsy Yield: Inflation 1.25 1.25
TIP (ETF) Inflation 114.6 114.4

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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