For the curious, the book - Zero (In)Tolerance- is about an alternative to negative interest rates. If the Fed had lowered to a paltry 3% instead of zero, investors would be happier, would have $150B / year more to "Consume" with, instead of borrowing, and gov't debt - Stimulus - would be much lower.
Only the banks and carry-traders benefited from zero, and if banks are too big to fail, where did the word Bank-rupt come from?
Back to Sentiment - the CBOE Equity put/call ratio rose to a recent record of 69, due to the recent correction; the McClellan Oscillator remains under minus 50, an oversold level. Both surveys became inverted last week, with Bears over Bulls - a good sign for the market.
Here are the numbers:
| MktSentiment | Last Week | Prev. Week | 5 Yr HI | 5 Yr LOW |
| DJIA: | 10012 | 10067 | 14093 | 6626 |
| Nasdaq: | 2141 | 2147 | 2805 | 1114 |
| S&P 500: | 1066 | 1073 | 1561 | 683 |
| CBOE Eq. put/call: | 69 | 68 | 96-10/08 | 46-1/03 |
| VIX: | 26.1 | 24.6 | 90 | 8.8 |
| McClellan Osc: | -69 | -93 | 108 | -100 |
| McClellan Sum: | 299 | 546 | 1568 | -1514 |
| Newsletter Surveys | ||||
InvestorsIntel.Bull: | 38.9 | 40.0 | 63 | 22.21 |
InvestorsIntel.Bear: | 40.0 | 23.3 | 54.4 | 16 |
AAII Bull: | 29.2 | 35.0 | n/a | n/a |
AAII Bear: | 43.1 | 36.7 | n/a | n/a |
| Nova/Ursa Mutual Funds: | 0.51 | 0.68 | 2.2 | 0.56 |
| US Equity-1 week lag | 8.9B | |||
| Money Market Flows | -13.6B | -21.9B | ||
| ETF equity:Monthly Totals | Dec.777B | Nov.738BB | ||
| Baltic Dry Index: | 2685 | 3223 | 11700 | 663 |
Bullish %: | 64 | 73 | 88 | 2 |
| Insider Corporate Sellers: | 28:1 | 8:1 | 108:1 | 2.4:1 |
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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