JANUARY EFFECT LIGHT (ECHO):

As Q3 of '07 begins, it is typical to have a mini-bull rush of new institutional funds similar to January, as evidenced by today's 100+ point runup. Holidays (July 4th) add to that euphoria, but will it last? The Bulllish Percent is down 3 PNF boxes ( any lower would be a 6% sell signal) so the next few days are key. The major indices look toppy with Double Tops, although the Nasdaq looks stronger.
As the quarter ended, Insider (CEO) Selling backed way off to 17:1 from 61 the week before, with Finance, Healthcare leading the buyers, Energy slightly leading the sellers. Surveyed Bulls backed off also, and Specialist shorting leapt up from 6.6 to 9 over the Public.
Another slight revision of the Sentiment Indicators in which the ISE exchange sees fit to charge for their put/call ratio - albeit only $10/month, not that valuable a statistic with the CBOE still available.
Here are the numbers:

Mktsentiment. 6/29/2007......5Yr.HI........ LOW

DJIA ………. 13408...........13668...........7286
Nasdaq………. 2603............2627.............1114
S&P500…….. 1503............1536............776
CBOE Eq. put/call ….66............87-5/04........46-1/03

VIX ………. 16.2..........44 9/02........10.0-7/05

ISEE-call/put ……. n/a...........299-12/04.......58 - 3/9/07
(>200/Bearish)

McClel Osc……………-11...............91-5/04.........(81)-5/04
McClelSum…………… 89..........1568-6/03.......(726)-5/04

Newsletter Surveys:
Inv.Intel -Bull:…..…. ..53.8...........62.9-12/04......35-6/06
Bear:………… 20.4 .........38.2-3/03.......16-6/03

AAII-Bull/Bear ………39.0/35.8....n/a n/a
MarketVane Bulls…. 63......... 74..............24
IBD: Short Interest- ….7.25……7.82………. 4.0
Public/NYSE Spec.-…..9.02………13.15……….1.0
Birinyi Blogger
Bull/Bear Poll …………31.4/31.4
Bullish%- ……….…72...............88 -2/04...... 46-8/04
*Insider corporate sellers 17:1
Sectors: Most Buyers: Healthcare, Finance
Most Sellers: Energy

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JANUARY EFFECT LIGHT (ECHO):