Monday, May 8, 2017


Today's stock markets were Underwhelmed by the victory in France of Macron over Le Pen. No surprise there, like Brexit and Trump. Although last week hit some new highs, markets are climbing out of Saucer formations moving into June - possibly the next rate hike. The 2-year Treas.rate picked up again into the 1.30s % while the 10-year hit 2.4%. No sign of a flat Yield curve, necessary for a Recession to occur - maybe 4-5 more hikes on the short end. Every decade has an "R", usually @ the zero year - so watch out below !

Sentiment Indicators were mixed - the Adv/Dec difference was a mere 13!, causing the McClellan Oscillator to end at the zero line; New Highs were strong, however. Margin Interest remains HUGE, as does the U S Debt, both of which will squirm when rates rise. Finally, the dollar hit a recent low, per Trump's wishes, which should help Gold.
See below:

Date   5/5/2017 4/28/2017
Indices: DJIA  21006 20940
  NAZ  6100 6047
SPX  2399 2384
WklyVolume (Bshs). naz/ny…. 9.9/4.4 9.4/4.8
Specul.Ratio hi=bullish 2.25 1.96
Sentiment: put/call-CBOE  66 65
VIX>50-alltmlow=8.8 10.5 10.8
DeltaMSI-50% MAC crossover 60.3 59.9
Advance/Dec-NYSE.. 1548/1535 1901/1175
Weekly Net: 13 726
     Cumulative: 176813 176800
Weekly  NYSE hi/low… 427/137 544/71
New Hi's/Low's Nasdaq h/l 429/196 561/138
McClellan  Oscillator 0 8
McClellanSum .+750/-1000 609 620
Newsletter Inv.Intel -Bull 58.5 54.7
Surveys-Tues Bear:-5yrs 17.9 17.9
Wed. AAII  -Bull  38.1 38.1
Bear  29.9 31.7
US$-WSJ 98.6 99.0
3-box rev Bullish%-  71 74
US equity -ICI Fund Flows WeekLate 6.8B
MMF flows Change in $B 1.6B 15.4B
MargDebt- top (300M) monthly  March 537B
10-yr Tsy yield hi= stock buying 2.4 2.3
2-yr Tsy Yield: Inflation 1.31 1.27
TIP (ETF) Inflation 113.7 115.2

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