Despite the gulf hurricane disaster, the tightening Fed, a weaker Dollar, lowered consumer and GDP estimates, seasonal roadbumps - you name it - the upward potential of the stock market that I mentioned last week is gaining more Sentimental momentum. Market downturns don't start when the Nasdaq Volume recedes against the NYSE, as it is now - at a new recent low of 88 (150 is usually a speculative top).
The McClellan Oscillator screaming up through the zero line (to +3 from last week's -39) is Bullish, as are other Indicators such as another recent record high in Public to Specialist shorting ratio at 3.53 (rarely above 3); short interest also remains high; and the Barron's Panic to Euphoria fell farther into the Panic mode at -0.48.
Rydex Nova to Ursa funds' ratio remains low at 18, while the AAII survey flip-flopped back to the inverted Bear-over Bull ratio of @ 38/32, with the Investor's Intelligence Bears clawing up to a high 27.3%. Shorters beware! (at least in the short term).
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
LABOR PAINS:
