Monday, June 9, 2008

IN THE MARKET FOR MONEY:

$18B went into Money Market Funds last week, adding to the $45B in May. According to Ned Davis, nearly 1/4 of the $13T stock market is in MMFs/Cash, the most since 2003, and more than the 3rd highest in 20 years. Added to record short interest (much of it by institutions) this could bode for a huge rally down the road.
After last week's Selling Climax Friday, the CBOE put/call ratio rose to 74, a short term buy signal borne out in today's rally; also, the VIX spiked to a 2 months high at 23.5, and the McClellan Oscillator is at -31, slightly oversold.
On the flip side, Insider Selling by CEOs, etc. also rose to a 2 month high of 27:1, with Energy more than 1/3 of total sector sales. Bullish per cent is at 50, still on a sell signal.
Here are the numbers:

MktSentiment. 6/6/2008 Prev. Week.....5Yr.HI......LOW

DJIA ………. 12209……….12638………..14093............7286
Nasdaq………. 2474………….2522…………2810.............1114
S&P500…….. 1360…………1400…………1561………..776
CBOE Eq. put/call …74…………..63……………..92-1/08…..........46-1/03

VIX ………. 23.5…………17.8…….…….44.. 9/02 bu........10.0-7/05 br

McClellan Osc………..-31………-18……………91-5/04 br......(-81)-5/04bu
McClelSum………254…………..340…………..1568-6/03.......-917

Newsletter Surveys:
Inv.Intel -Bull:…..…44.8…………37.9……….…12/04br......35-6/06bu
Bear:………… 31.1…………32.2………… 38.2-3/03.......16-6/03

AAII-Bull/Bear ……43.5/38.0……31.4/45.8……..n/a n/a
IBD: Short Interest- 14.38nh…….14.3nh…………14.3………. 4.0
Public/NYSE Spec.-…11.5……….10.4…….21bl…………..1.0br
Bullish%- ………….50…………..55…….…88 -2/04br.....19bu
*Insider corporate sellers.27:1……..9:1………..97…………..5
Sectors: Most BuyersFinance Most Sellers: Energy (1/3)

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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