REVERSAL OF FORTUNE

I was Shocked ! Shocked ! when I saw the stock market futures last night and more so when it opened today. After all the turmoil - domestically and globally of the weekend, and a dismal August for stocks, the next 4-5 weeks are consistently the worst of the year historically. So we're not out of the woods yet, at least for a minor correction - a Recession is probably still 18-24 months away. But when it hits, it will be a doozy as US and global Debt rises exponentially out of control.

Volume was down, due to the 4-day week, breadth was slightly negative ( Advances, New Highs, etc.); most all else was frozen from last week. See below:

	SPX	2461	2476
WklyVolume (Bshs).	naz/ny….	7.5/3.3*	8.2/3.6
Specul.Ratio hi=bullish		2.27	2.28
Sentiment:	put/call-CBOE	63	57
VIX>50-alltmlow=8.8		12.1	10.1
DeltaMSI-50%	MAC crossover	54	51
Advance/Dec-NYSE..		1227/1839	2210/867
Weekly Net:		-612	1343
Cumulative:		179534	180146nh
Weekly	NYSE hi/low…	280/88	285/115
New Hi's/Low's	Nasdaq h/l	300/132	302/133
McClellan	Oscillator	13	46
McClellanSum	.+750/-1000	347	267
Newsletter	Inv.Intel -Bull	49.5	49.5
Surveys-Tues	Bear:-5yrs	19.1	19.1
Wed.	AAII  -Bull	29.3	25
	Bear	35.7	39.9
US$-WSJ		91.3	92.8
3-box rev	Bullish%-	66	66
US equity -ICI	Fund Flows	weeklate	3.7B
MMF flows	Change in $B	11.1B	(20B)
MargDebt- top (300M)	monthly		JULY:
10-yr Tsy yield	hi= stock buying	2.05	2.17
2-yr Tsy Yield: Inflation		1.27	1.35
TIP (ETF)	Inflation	115.2	114.2

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: 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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REVERSAL OF FORTUNE