Once again the Sentiment Indicators warned of an overbought condition in the markets - December's 3rd full week ended with several Indicators at complacent extremes; a few ameliorated during the final week (such as the 2 put/call ratios, the VIX, and a few less advances than declines), but some got even extended moreso: NYSE new highs vs. new lows; and the Nasdaq Volume vs. NYSE Volume, near a 12 month speculative high. The Public is shorting more than the Specialist at 1.91 to 1. After Monday's profit-taking only the fullness of time will reveal the extent of this correction.
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
Subscribe in a reader
YEAR-END CONDITION:
No comments:
Post a Comment