From the top down, the CBOE Equity put/call ratio ended the week with a recent record high of 73, while its cousin, the ISEE call/put ratio ended at 109, after breaking 1.0 for the first time since October of '04. That was when the CBOE hit 79!
Market breadth was also hopeful, with the A/D very strong on the NYSE, a healthy divergence, and the NAZ dead even on new highs vs. lows.
In newsletter surveys, the Inv.Intell. narrowed its spread of Bulls vs. Bears to 42 vs. 30, while the inverted AAII ratio widened its with 50 Bears and 30 Bulls - dramatic!
The Public to NYSE Specialist shorting rose to a near record 5.75 number.
Still warning of contrary action is the McClellan Oscillator, which over-exuberantly ran to +50, often a topping point. And the Rydex fund investors are asleep, dead, or extremely wise, holding at their record low 12 in the Nova/Ursa ratio. Finally, the Bullish Per Cent chart rose slightly, but not with a 3-box PNF BU Y reversal signal as of yet.
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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