Although NYSE Short Interest is double that of a year ago, complacency still runs rampant especially in the Bullish Per Cent Pt. & Figure chart at 68, nearing a topping zone; I.I., or Investor's Intelligence, measure a 55.8% Bullish to 21.1% Bear ratio (as does the AAII survey), a large spread. The Rydex Nova/Ursa climbs higher, to 23, still in a medium range boding well for longer term. Worst of all is the McClellan ratio-adjusted Oscillator coming off its toppy 51 last week to only +27 Friday - hardly a bottom.
Holding fast are the IBD short interest ratio and Public/Specialist at nicely high levels, and Mutual Fund Cash took an upturn at 4.6%.
Hopefully, once this Institutional year-end Selling is over, the rally will resume, culminating in a Santa Claus rally between Christmas and New Year's, as it has for 8 of the last 8 years. What should really clear things up in the financial markets is the fact that the number of Economists has increased 30% to 30,000 in the U.S. Former Pacific Coast Exchange Lee Korins once described an Economist as one who was good with numbers but didn't have the charm or charisma to become an accountant!
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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