SPRING FORWARD:

Just when you think this tired old Bull market has finally rolled over because of its overdue length, semi-annual seasonality, IRS and IRA contributions, and overbought conditions, we get a big 200-point spurt that reignites it. Could it be the oil rich foreigners are buying us out via equities, global real estate, etc.? Is Dubai really buying Daimler/Chrysler? It surely cannot be the locals, who are ponying up for gas and the trucked-in products that rely on it, while we get higher borrowing rates - going from 1% to 5%.
NYSE Advance/Declines zoom to 2:1 for the week bringing the oversold McClellan Oscillator back to the safe zero line at -2. Those perspicacious AAII people go Bearish on us - inverting the Bull/Bear ratio by 41 to 34, a sure Bullish import. The Bulls in the Rydex Nova/Ursa ratio are evaporating, as it moves to another recent low of 15.
On the flip side, however, we have the Panic/Euphoria Index hitting a new high of -0.19, well above water in the complacent area, and Public vs Specialists are backing away from shorting by a big % move, from 5.68 to 4.44.
So we still have no dominant signal as we stay in the upward biased Trading Range.

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

SPRING FORWARD: