HOUSECLEANING:

Now that the public has decided that a Woman's place is in the House, it's time to make some minor changes in the Sentiment Indicators: since the Commitment of Traders' gave no signal other than coincident, it has been replaced by Mutual Fund flows from AMG Data. Although Intermediate to Long term, it does reflect a contrary result, causing the public to be historically 180 degrees wrong at both tops and bottoms. Also being tracked are ETF flows.
Despite the shocking results,( both Barron's and the Iowa ElectronicMarkets.com had the Republicans winning the Senate), not much changed in either the Indicators or the market direction. Despite Demos profligate spending prognosis, the housing reversal, a slower Economy, etc., money seems to slosh in from Japanes yen-carry trade, etc. raising all boats.
Although the Transports cannot make a new yearly, not even monthly, high to confirm the Dow Theory, the Industrials do set records, paced by multi-national firms enjoying global increased profits.
Mktsentiment. 11/10/2006......5Yr.HI........ LOW
DJIA 12108...........11577...........7286Nasdaq 2389............2243............1114S&P500 1380............1325............776CBOE Equity put/call 62.............87-5/04........46-1/03 VIX 10.8.........44 9/02........10.3-7/05
ISEE-call/put 135...........299-12/04.......82-4/02(>200/Bearish)
McClel Osc.(+75/-100) 5.............91-5/04.........(81)-5/04McClelSum.(+750/-1000) 921...........1568-6/03.......(726)-5/04
Newsletter Surveys:Inv.Intel -Bull:62/28 52.1...........62.9-12/04......35-6/06Bear:43.2/16.1--5yrs 26.0.........38.2-3/03.......16-6/03
AAII-Bull/Bear 50.6/26.5.....n/a n/a MarketVane Bulls 73.............73..............24
Barron's Panic/Euphoric Master Idx -0.59........-0.24 4/06.....-0.75 11/05
Bullish%- 75...............88 -2/04...... 46-8/04

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

HOUSECLEANING: