QUANTUM SHIFT:

If anyone doubts that hedge funds/institutions rule the equities markets, versus long term mutual funds and value investors, today's round trip of nearly 400 Dow points should negate any Fundamental "fair"value model. The best, biggest and brightest of the 8,000 or so hedge funds that had their worst fund ever in July, are shaking markets intraday at rare 2% swings more and more commonly. Profit-taking from the several directional momentum plays of summer - gold, silver, energy, coal, etc. reared its ugly head as vacationers returned to the fray.
Among the sentiment indicators followed here, the Insider Trading, at 22:1, was the largest since the June swoon, and the McClellan Oscillator last week broke up through the +50 level to return to 40 by week end, possibly foretelling a short term overbought market.
Money flowed out of mutual funds, ETFs and Money Market funds, possibly to buy things (school, etc.), domestically and globally. The AAII Bulls midweek did show fear in reversing their complacency -see below:
MktSentiment. 8/29/2008 Prev. Week.....5Yr.HI......LOW

DJIA ………. 11543……….11628………..14093............7286
Nasdaq………. 2367…………2414…………2810.............1114
S&P500…….. 1282…………1292………….1561………..776
CBOE Eq. put/call …71…………….70……………..92-1/08….....46-1/03

VIX ………. 20.6………….18.8…….…….44… 9/02 bull..10.0-7/05 bear

McClellan Osc……….40…………17……………91-5/04 bear...(-81)-5/04bull
McClelSum……….…-275………-405…………..1568-6/03.......-1187
Newsletter Surveys:
Inv.Intel -Bull:…..…39.3…………40.7……….…63 (12/04bear)......35-6/06bull
Bear:………… 39.3…………38.4…..………… 38.2-3/03.......16-6/03

AAII-Bull/Bear ……30.7/45.5……38.1/37.3……..n/a n/a
IBD: Short Interest- na…………….na…………15.0………. 4.0
Public/NYSE Spec.-…14.6………..15.6…….….
Bullish%- ………54………….…50………….…88 -2/04br.....19bu
*Insider corporate sellers.22:1…….18:1………..97………….4
Mutual Fund Inflows: (1.2B)……..(.5B)
ETF InflowsL..(2.5B)…………..(.7B)
Money Market Inflows: (3.8B)……2B