Sunday, May 25, 2008

ALOHA:

This issue comes a day early (and next week's a day late) due to another vacation. Last week's slaughter of stocks brought mixed reactions to the indicators. Some, such as the McClellan Oscillator at -35, plus the holiday and 1st-of-the-month kindness, would bode for a relief rally short term. Others, such as the VIX, which reached October's low spike (the all time high before the fall), has climbed back just below 20. Short interest on the NYSE hit a new record high of $60B (13.8% on the IBD chart) with Finance and Energy the most heavily shorted ETFs.
Corporate insiders were buyers of Finance, however, and Energy and Tech were the sellers' targets. Bullish per cent went to a Sell signal after last week's runoff, but even with a 6% filter it can get whipsawed.
CBOE equity put/call rose some, and OTC puts were bought before the holiday weekend.
Here are the numbers:

MktSentiment. 5/23/2008 Previous Week..5Yr.HI...... LOW

DJIA ………. 12479………..12986………..14093............7286
Nasdaq………. 2444…………2528…………2810.............1114
S&P500…….. 1375…………1425…………1561………..776
CBOE Eq. put/call …67…………….61……………..92-1/08…..........46-1/03

VIX ………. 19.5…………16.5…….…….44.. 9/02 bu........10.0-7/05 br
Intrade.com-
Recession% 30…………..35…………..76(bullish)….28(bearish)
McClellan Osc………-35…………36……………91-5/04 br......(-81)-5/04bu
McClelSum………390……………426…………..1568-6/03.......-917

Newsletter Surveys:
Inv.Intel -Bull:…..…47.3…………46……….…12/04br......35-6/06bu
Bear:………… 30.8…………29.9………… 38.2-3/03.......16-6/03

AAII-Bull/Bear ……46.3/34.3……45.2/29.7……..n/a n/a
MarketVane Bulls…54……………53…………. 74br..............24bu
IBD: Short Interest- 13.8nh……….13.4nh…………13.8………. 4.0
Public/NYSE Spec.-…10.4…………11.3…….21bl…………..1.0br
Birinyi Blogger
Bull/Bear Poll ………31.8/40.9……36/45
Bullish%- …………55sell………62…….…88 -2/04br.....19bu
*Insider corporate sellers.17:1 …..20:1………..97…………..5
Sectors: Most Buyers: Finance (1/3 of all sectors)
Most Sellers: Energy, Technology

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


Share/Save/Bookmark

No comments:

Post a Comment