Another tight correlation, also coincident, is one I've espied for years in the IBD (Investors' Daily), on the chart page, between the DJIA and put/call trading Volume below it - also inverse.
Although coincident may be too late to act, being in the neighborhood can be an eventual and cautionary alert.
Last week's drowsy mean-seeking numbers gave little indications, save for the AAII Bull/Bear readings - a very reliable one: they jumped from 30/42 to 20/49, which is cause for an imminent rally, possibly after Labor Day - a usually bullish time, before the Sept./Oct. onslaught.
| MktSentiment | Last Week | Prev. Week | 5 Yr HI | 5 Yr LOW |
| DJIA: | 10150 | 10213 | 14093 | 6626 |
| Nasdaq: | 2153 | 2179 | 2805 | 1114 |
| S&P 500: | 1064 | 1071 | 1561 | 683 |
| CBOE Eq. put/call: | 70 | 66 | 96-10/08 | 46-1/03 |
| VIX: | 24.4 | 25.5 | 90 | 8.8 |
| McClellan Osc: | -15 | -34 | 108 | -123 |
| McClellan Sum: | 371 | 607 | 1568 | -1514 |
| Newsletter Surveys | ||||
InvestorsIntel.Bull: | 33.3 | 36.7 | 63 | 22.21 |
InvestorsIntel.Bear: | 31.2 | 31.1 | 54.4 | 16 |
AAII Bull: | 20.7 | 30.1 | n/a | n/a |
AAII Bear: | 49.5 | 42.5 | n/a | n/a |
| Nova/Ursa Mutual Funds: | n/a | n/a | 2.2 | 0.56 |
| US Equity-1 week lag | n/a | (2.7B) | ||
| Money Market Flows | 3.7B | 4.1B | ||
| ETF equity:Monthly Totals | Apr.831B | Mar.805B | n/a | |
| Baltic Dry Index: | 2703 | 2756 | 11700 | 663 |
Bullish %: | 44 | 54 | 88 | 2 |
| Insider Corporate Sellers: | 18:1 | 14:1 | 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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