SANTA CLAUS RALLY:

This week is traditionally the week for the Santa Claus rally and the Mother of all rallies (in his 40 years) that Tom Demark predicted (offset a couple weeks). Also notable are the technically high probability events ( recently negated by Fed intervention, etc.) are the January Effect of small cap stocks and CEF (closed-end funds), such as munis, that get sold off in December, only to rally in January - something that is observable if not actionable.
Indicators are mean reverted, except for the McClellan Oscillator near its high border of 50, and bull/bear newsletters approaching complacency - so we could have a hiccup on the way higher. With markets barely even from a year ago, and even a decade ago, you might want to check out my other blog: http://ditmcalls.blogspot.com for safer yet much more rewarding strategy, or just an alternative to zero interest rates in CDs, MMFs, etc.
Here are the Indicators for last week:

Date>		12/23/2011	12/16/2011
Indices:	DJIA	12294	11866
	NAZ	2618	2555
	SPX	1265	1219
NASD/NYSE	WklyVolume (Bshs)	3.8/7.7	5.3/9.3
nasd/nyse	Specul.Ratio hi=bullish	2.03	1.75
Sentiment:	put/call-CBOE	63	80
Barron's	VIX>50-alltmlow=8.8	20.7	24.29
	Advance/Dec-NYSE	2577/587	813/2348
	Weekly Net:	1990	-1535
	Cumulative:	125945	123955
Weekly	NYSE hi/low	293/146	190/168
New Hi's/Low's	Nasdaq h/l	111/257	87/292
McClellan	Oscillator	48	-17
McClellan Sum	.+750/-1000	134	81
Newsletter	Inv.Intel -Bull:tues	48.4	45.3
Surveys	Bear:-5yrs	30.5	30.5
	AAII  -Bull :wed.	33.7	40.2
	Bear	28.2	33.6
COT:Change w/w	large/small (net)k	0/12.	17/19.
CEOinsider	selling	10:1	19:1
BalticDryIndex	GlobalEcon	1888	1889
3-box rev	Bullish%-	61	58
US equity -ICI	Fund Flows	1 wk lag	(4.0B)
MMF flows	Change in $B	14.2B	.3B
MargDebt- top (300M)	monthly OCT.		283B
ETF:Eqty/Int'l/Bond	million$$ OCT.		615/265/174
2-yr Tsy Yield: Inflation		0.29%	0.23%
Euro futures	1 yr.offset	5.06M	5.78M

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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SANTA CLAUS RALLY:

"OFF" DEMARK:

Over the years I've heard Technical Analyst Tom Demark at TSAA meetings, Bloomberg talks (he was on their staff with his Indicator), even had dinner with him - but never quite bought into his math predictions. Two weeks ago , highly touted by Bloomberg's Adam Johnson, as being followed by Soros, SAC's Cohen, et.al., when his bullish prediction lined up with my observations, I forecasted a seasonal rally.
Tom's prediction: 1330-45 on the SPX by the 21st of Dec. did seem pretty outlandish, and now - two days away, with the SPX at 1212, it would take a Xmas miracle to get there, although a yearend rally is likely (The Santa Claus rally is actually between Xmas and New Year's).
Other than the CBOE put/call ratio at 80, no other Indicator is at an extreme, this past low-volume week:

Date>		12/16/2011	12/9/2011
Indices:	DJIA	11866	12184
	NAZ	2555	2646
	SPX	1219	1255
NASD/NYSE	WklyVolume (Bshs)	5.3/9.3	4.4/8.3
nasd/nyse	Specul.Ratio hi=bullish	1.75	1.89
Sentiment:	put/call-CBOE	80	77
Barron's	VIX>50-alltmlow=8.8	24.29	26.38
	Advance/Dec-NYSE	813/2348	1876/1269
	Weekly Net:	-1535	607
	Cumulative:	123955	125490
Weekly	NYSE hi/low	190/168	239/44
New Hi's/Low's	Nasdaq h/l	87/292	110/147
McClellan	Oscillator	-17	16
McClellan Sum	.+750/-1000	81	237
Newsletter	Inv.Intel -Bull:tues	45.3	47.4
Surveys	Bear:-5yrs	30.5	29.5
	AAII  -Bull :wed.	40.2	38.6
	Bear	33.6	34.8
COT:Change w/w	large/small (net)k	17/19.	11/34.
CEOinsider	selling	19:1	40:1
BalticDryIndex	GlobalEcon	1889	1882
3-box rev	Bullish%-	58	61
US equity -ICI	Fund Flows	1 wk lag	1 wk lag
MMF flows	Change in $B	.3B	25.3B
MargDebt- top (300M)	monthly OCT.	283B
ETF:Eqty/Int'l/Bond	million$$ OCT.	615/265/174
2-yr Tsy Yield: Inflation		0.23%	0.23%
Euro futures	1 yr.offset	5.78M
	CommHedg

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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"OFF" DEMARK:

OVERFISHING:

Days like today (down 240 points on the DJIA) only further the idea that the sharks (HFTs, Institutional Traders, et.al) are driving the small fish out of the water -only to fight among themselves. In the matrix below we see that equity mutual fund outflows have steadily occurred since April 22 without exception, and money market inflows are again happening -after the scare about dangerous European securities being invested in.

The new format below, not as eye-appealing, but with more data, now shows NASD to NYSE Volume and ratio (NASD being speculative); also shown is the weekly Adv./Dec. on the NYSE with my cumulative totals.The only real negatives this week were the AAII bull/bear reverted to more Bulls, and CEO Insider Selling leaped to 40:1. Finally, the ETF equity funds increased 20% month over month, to $615M.

Date>		12/2/2011	12/9/2011
Indices:	DJIA	12019	12184
	NAZ	2626	2646
	SPX	1244	1255
NASD/NYSE	WklyVolume (Bshs)	5.3/9.1	4.4/8.3
nasd/nyse	Specul.Ratio hi=bullish	1.72	1.89
Sentiment:	put/call-CBOE	61	77
Barron's	VIX>50-alltmlow=8.8	27.5	26.38
	Advance/Dec-NYSE	2698/479	1876/1269
	Weekly Net:	2219	607
	Cumulative:	124883	125490
Weekly	NYSE hi/low	258/120	239/44
New Hi's/Low's	Nasdaq h/l	95/229	110/147
McClellan	Oscillator	-2	16
McClellan Sum	.+750/-1000	176	237
Newsletter	Inv.Intel -Bull:tues	44.2	47.4
Surveys	Bear:-5yrs	30.5	29.5
	AAII  -Bull :wed.	33	38.6
	Bear	39.4	34.8
COT:Change w/w	large/small (net)k	…4/12	11/34.
CEOinsider	selling	11:1	40:1
BalticDryIndex	GlobalEcon	1862	1882
3-box rev	Bullish%-	58	61
US equity -ICI	Fund Flows	(6.7B)	1 wk lag
MMF flows	Change in $B	6.1B	25.3B
MargDebt-mkt down 22% 1 year after top (300M)	monthly OCT.	283B
ETF:Eqty/Int'l/Bond	million$$ OCT.	615/265/174
2-yr Tsy Yield: Inflation		0.26%	0.23%

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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OVERFISHING:

RALLYTIME?:

Last week's pre-Xmas gift in the markets sent most Indicators into the median area; however, the AAII bull/bear ratio (one of the better Indicators) is still inverted for a seasonal upswing.
Monthly ETF flows show a big swing into Equities -
Here are the numbers:

Date>			11/25/2011	12/2/2011
Indices:	DJIA		11231	12019
	NAZ		2441	2626
	SPX		1158	1244
NASD/NYSE	WklyVolume (Bshs)		3.1/6.3	5.3/9.1
nasd/nyse	Specul.Ratio hi=bullish		2.03	1.72
Sentiment:	put/call-CBOE		69	61
Barron's	VIX>50-alltmlow=8.8		34.47	27.5
	Advance/Dec-NYSE		na	2698/479
	Weekly Net:		"	2219
	Cumulative:		"	124883
Weekly	NYSE hi/low		"	258/120
New Hi's/Low's	Nasdaq h/l		"	95/229
McClellan	Oscillator		-98	-2
McClellan Sum	.+750/-1000		296	176
Newsletter	Inv.Intel -Bull:tues		47.4	44.2
Surveys	Bear:-5yrs		32.6	30.5
	AAII  -Bull :wed.		32.7	33
	Bear		38.3	39.4
COT:Change w/w	large/small (net)k		na	…4/12
CEOinsider	selling		7:1	11:1
BalticDryIndex	GlobalEcon		1854	1862
3-box rev	Bullish%-		50	58
US equity -ICI	Fund Flows		(.1B)	1 wk lag
MMF flows	Change in $B		1B	6.1B
MargDebt-mkt down 22% 1 year after top (300M)	monthly	Sept:		283B
ETF:Eqty/Int'l/Bond	million$$	Sept:		615/265/174
2-yr Tsy Yield: Inflation			0.28%	0.26%

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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RALLYTIME?:

NEW & DEPROVED SENTIMENT TABLE:

Still working on the matrix transfer, but the data is updated. 
One of my DITM blog readers kindly shared a DITM-style website, for those interested:
tknight@fullyinformed.com
Additionally, the Gabelli ETF - GDV- also does a nice job, with a 3+% mgmt fee. I also listed 2 trades I did today, ex-dividend tomorrow.
Sentiment Indicators pretty much backed off, despite the ugly Thanksgiving week; except for the reliable McClellan Oscillator at negatve 98 - a huge BUY signal that proved true today. Although the Inv.Intell. numbers seem stale (from the week before), the AAII inverted, with more Bears again; and the Insider Selling dropped precipitously last week.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11231	11796	14093	6626
Nasdaq:	2441	2572	2861	1114
S&P 500:	1158	1215	1561	683
CBOE Eq. put/call:	69	80	96-10/08	46-1/03
VIX:	34.47	32.0	90	8.8
McClellan Osc:	(98)	(40)	108	(123)
McClellan Sum:	296	650	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	47.4	47.4	63	22.21
InvestorsIntel.Bear:	32.6	32.6?	54.4	16
AAII Bull:	32.7	41.9	n/a	n/a
AAII Bear:	38.3	31.00	n/a	n/a
US Equity-1 week lag	n/a	(.1B)
Money Market Flows	1B	6.4B
Baltic Dry Index:	1854	1846	11700	663
Bullish %:	50	65	89	2
Insider Corporate Sellers:	7:1	30:1	235:1	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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NEW & DEPROVED SENTIMENT TABLE:

INTRADE WE TRUST:

The great Irish betting website -Intrade.com has the odds of the Stupercommittee doing its job at 8% today.
As you can see below, Google's googling of my Indicator matrix has created some problems, resulting in my printing the Excel sheet itself, with a couple more stats.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11796	12153	14093	6626
Nasdaq:	2572	2678	2861	1114
S&P 500:	1215	1263	1561	683
CBOE Eq. put/call:	80	73	96-10/08	46-1/03
VIX:	32.0	30.0	90	8.8
McClellan Osc:	(40)	38	108	(123)
McClellan Sum:	650	747	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	47.4	44.2	63	22.21
InvestorsIntel.Bear:	32.6	34.7	54.4	16
AAII Bull:	41.9	44.7	n/a	n/a
AAII Bear:	31.0	24.6	n/a	n/a
US Equity-1 week lag	n/a	(3.7B)
Money Market Flows	6.4B	16B
Baltic Dry Index:	1840	1817	11700	663
Bullish %:	65	72	89	2
Insider Corporate Sellers:	30:1	34:1	235:1	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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INTRADE WE TRUST:

NOW WE'RE GETTING NOWHERE:

The closing price of the S&P 500 on Dec.31 of 2010 was 1,257 - as of this morning, the SPX is again: 1,257, despite a volatile year. Something like 88 trading days have seen triple-digit swings YTD. Dividends anyone?
The last time the AAII Bull/Bear ratio was spread this wide (the Bears 20 points below the Bulls) was July 15 week. A week later the DJIA dropped 2,000 points. Two other favorite indicators of mine - the McClellan Oscillator and CBOE Equity put/call ratio - are also getting toppy; as is the Bullish %.
Tom McClellan has kindly offered to share with us (in the upcoming TSAA Review)  the correlation he showed on Bloomberg last week of the Euro$ Commitment of Traders vs. the SPX - offset 1 full year. His prediction is a bar bell UP for the first and last part of 2012 and sideways during the summer months.
Here  are the Sentiment numbers:

Date>			10/28/2011	11/4/2011	11/11/2011	7Yr.HI	LOW
Indices:	DJIA		12234	11983	12153	14093	6626
	NAZ		2737	2686	2678	2861	1114
	SPX		1285	1253	1263	1561	683
NASD/NYSE	WklyVolume (Bshs)		5.5/10.4	5.3/10.0	4.4/9.2
nasd/nyse	Specul.Ratio hi=bullish		1.89	1.89	2.09	2.3	1.59
Sentiment:	put/call-CBOE		59	76	73	104.11/08	42
Barron's	VIX>50-alltmlow=8.8		24.5	30.1	30	90	8.8
	Advance/Dec-NYSE		2679/492	1023/2119	1558/1592
	Weekly Net:		2187	-1096	-34
	Cumulative:		125585	124489	124455	127929	71464
Weekly	NYSE hi/low		229/38	113/57	154/73	950	18
New Hi's/Low's	Nasdaq h/l		153/98	87/139	89/159
McClellan	Oscillator		77	22	38	108-1/09	-100 -10/08
McClellan Sum	.+750/-1000		546	653	747	1568-6/03	-1514
Newsletter	Inv.Intel -Bull:tues		40	43.2	44.2	62.9-12/04	22.2-10/08
Surveys	Bear:-5yrs		37.9	36.8	34.7	54.4-10/08	15.6
	AAII  -Bull :wed.		43	40.2	44.7	(12/10)63.3
	Bear		25	29.6	24.6	70.3(3/09)	16.4
COT:Change w/w	large/small (net)k		12/(10)	3/15.	n/aHoliday
CEOinsider	selling		29:1	35:1	34:1	235:1	.2.1
BalticDryIndex	GlobalEcon		2153	1817	1840	11700	663
3-box rev	Bullish%-		77	74	72	88	2

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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NOW WE'RE GETTING NOWHERE:

HALLOWE'EN "FREQ" SHOW:

High Frequency Traders (HFTs) have caused the highest correlation among stocks and sectors in decades, negating much of both Fundamental and Technical Analysis. This was shown in the October rally where shorts were dashing to cover everything pinned on the edgy European situation.  Sentiment still has predictive value, especially my favorite ones: McClellan Oscillator, Bullish %, and CBOE put/call ratio - all divining the rally.
This week extremes include the put/call ratio , high, at 76 (Bullish), but the Bullish % and Insider Selling also high (Bearish). Here are the numbers:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11983	12234	14093	6626
Nasdaq:	2686	2737	2861	1114
S&P 500:	1253	1285	1561	683
CBOE Eq. put/call:	76	59	96-10/08	46-1/03
VIX:	30.1	24.5	90	8.8
McClellan Osc:	22	77	108	(123)
McClellan Sum:	653	546	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	43.2	40.0	63	22.21
InvestorsIntel.Bear:	36.8	37.9	54.4	16
AAII Bull:	40.2	43.0	n/a	n/a
AAII Bear:	29.6	25.0	n/a	n/a
US Equity-1 week lag	n/a	(3.2B)
Money Market Flows	(12B)	(0)
Baltic Dry Index:	1817	2153	11700	663
Bullish %:	74	77	89	2
Insider Corporate Sellers:	35:1	29:1	235:1	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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HALLOWE'EN "FREQ" SHOW:

UNDER THE COUNTER; "BEAR"-LY BELOW:

According to my records of weekly closes, the Nasdaq is only 4.3% below its all-time highs of the last decade; the SPX down 17.7% and the DJIA 13.2%. Whether the NAZ can make new highs depends on the usual year-end rally and the upcoming Bullish 6-months cycle (Nov. to Apr.). The Election year of a Presidential (4-year Kinchen) cycle is usually slightly up. Beyond that, Martin Pring's Lost Decade is still the dominant cycle, echoing Japan's previous markets.

Here are the numbers:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	12234	11808	14093	6626
Nasdaq:	2737	2637	2861	1114
S&P 500:	1285	1238	1561	683
CBOE Eq. put/call:	59	64	96-10/08	46-1/03
VIX:	24.5	31.3	90	8.8
McClellan Osc:	77	69	108	(123)
McClellan Sum:	546	173	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	40.0	35.8	63	22.21
InvestorsIntel.Bear:	37.9	41.0	54.4	16
AAII Bull:	43.0	36.0	n/a	n/a
AAII Bear:	25.0	34.6	n/a	n/a
US Equity-1 week lag	n/a	(3.5B)
Money Market Flows	0	(2B)
Baltic Dry Index:	2153	2161	11700	663
Bullish %:	77	63	89	2
Insider Corporate Sellers:	29:1	60:1	235:1	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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UNDER THE COUNTER; "BEAR"-LY BELOW:

TWIST AND SHOUT! :

While the Fed does the Twist with Zero interest rates impoverishing prudent investors while banks prosper, Occupy Wall St. shouts displeasure (37% of those polled agree with them). Uncle Ben predicted that the QEs would raise the stock market, but failed to mention the prices of oil, food, etc. that the average citizen had to buy, while receiving negative interest after Inflation (2 1/2%), taxes (going up soon), and a weakening $.
The year-end rally has begun, according to various cycles, but could become sticky around the current level (Jan., Mar., and Jun. lows/Support). 
Last week imitated the new PBS TV program Red/Green on my charts - a rarity in Volatility. Disappointing was that the Nasdaq (which indicates Bullish speculation) did not rise along with the DJ and SPX. Its New Highs/Lows also remain negative as well.
Although the McClellan Summation made its first positive reading since last July ( positive breakthrough), the Oscillator remains overbought at +69. Another interesting number is the Insider Selling of Key Officers - it has jumped from a record low of 3:1, two weeks ago, through 30:1 to 60:1. Early Christmas shopping?
AND NOW FOR A COMMERCIAL:
Readers who follow my 3-year testing of my Optimal DITM covered call strategy on http://ditmcalls.blogspot.com are advised that after 25 years of managing substantial family money (3 with DITM), I have decided to take on a few clients (under the SEC minimum), since although DITM seems like a simple strategy, people have asked me at various lectures and booksignings to manage it for them. More details are available at the blog or brentleonard59@gmail.com if interested.
Here are the numbers from last week:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11808	11644	14093	6626
Nasdaq:	2637	2667	2861	1114
S&P 500:	1238	1224	1561	683
CBOE Eq. put/call:	64	66	96-10/08	46-1/03
VIX:	31.3	28	90	8.8
McClellan Osc:	69	80	108	(123)
McClellan Sum:	173	(74)	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	35.8	34.4	63	22.21
InvestorsIntel.Bear:	41.0	46.3	54.4	16
AAII Bull:	36.0	39.8	n/a	n/a
AAII Bear:	34.6	36.4	n/a	n/a
US Equity-1 week lag	n/a	(5.9B)
Money Market Flows	(2B)	5B
Baltic Dry Index:	2161	2155	11700	663
Bullish %:	63	55	89	2
Insider Corporate Sellers:	60:1	30:1	235:1	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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TWIST AND SHOUT! :

PRICE-LESS:

Of my two trips to wonderful downtown Sunnyvale last week, the one Saturday to hear Price Headley talk for 5 hours on Technical Analysis and Metastock indicators - I believe Price used to work for Bernie Schaeffer, the Sentiment guru, before becoming one of the rising stars in market analysis- was by far the most worthwhile.
The Thursday event with Stan Ehrlich, despite his years of experience and accomplishments, was a non-event. I would recommend the reader to check out BigTrends.com for Price's information. At the beginning of the talk he polled the audience of @ 100 how it viewed the 1-month, 6-month and 1-year time frames. At the break, the results were revealed to be most Bullish for all three -with predictions of 1249, 1441, and 1550 on the S&P 500, respectively - I, contrarily, was not among the last two, sharing Martin Pring's Lost Decade scenario for a few more years - hence my DITM strategy (see ditmcalls.blogspot.com if unfamiliar).
Speaking of Sentiment, I was surprised Sunday night to see the futures quite positive for Monday's opening, but overnight they slipped into strong negative territory - no doubt due (not) to European uncertainty by the media. The signal I saw for a short term overbought condition was a plus 80 on the McClellan Oscillator - a very reliable Indicator.
Especially after such a strong runup last week. Volume was quite weak on the upturn, and several Bullish Indicators regressed to the mean last week.In fact the Inv.Intell. ratio showed more Bulls than Bears for the first time in over a month. The Bullish % of stocks on a Buy signal leapt from 29 to 55 on the Pt.& Fig. chart, and Insider Selling also jumped from a super low 3:1 to 30:1
Here are the numbers:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11644	11103	14093	6626
Nasdaq:	2667	2479	2861	1114
S&P 500:	1224	1155	1561	683
CBOE Eq. put/call:	66	74	96-10/08	46-1/03
VIX:	28	36	90	8.8
McClellan Osc:	80	9	108	(123)
McClellan Sum:	(74)	(386)	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	34.4	34.4	63	22.21
InvestorsIntel.Bear:	46.35.2	45.2	54.4	16
AAII Bull:	39.8	35.2	n/a	n/a
AAII Bear:	36.4	45.7	n/a	n/a
US Equity-1 week lag	n/a	(4.2B)
Money Market Flows	(3B)	5B
Baltic Dry Index:	2155	2000	11700	663
Bullish %:	55	29	89	2
Insider Corporate Sellers:	30:1	3:1	235:1	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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IT NEVER RAINS IN SOUTHERN CALIFORNIA - IT POURS !:

Back from vacation, where the weather was as volatile as the stock market, I was happy to see little damage to my DITM covered call strategy, made whole by today's rally. Although the VIX came off the 4 handle down to 36, the CBOE equity put/call ratio zoomed up to 74 - good for the market (as we saw today). NYSE new highs to lows were an incredible 33 to 1,296; 23/947 on the OTC. Both newsletter surveys - Inv.Intell. and AAII remained inverted, with more Bears. Insider selling to buying was a lowly 3:1 ratio. Money actually went into MMFs for the first time in a month; monthly data on ETFs showed money coming out of equity and international funds -level in bonds. The 2010 support level on the SPX (S&P500) held at 1100 -now trying to break resistance at 1200.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11103	10913	14093	6626
Nasdaq:	2479	2415	2861	1114
S&P 500:	1155	1131	1561	683
CBOE Eq. put/call:	74	72	96-10/08	46-1/03
VIX:	36	43	90	8.8
McClellan Osc:	9	na	108	(123)
McClellan Sum:	(386)	(na)	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	34.4	37.6	63	22.21
InvestorsIntel.Bear:	45.2	40.9	54.4	16
AAII Bull:	35.2	32.5	n/a	n/a
AAII Bear:	45.7	46.8	n/a	n/a
US Equity-1 week lag	n/a	(5.7B)
Money Market Flows	5.0B	(1.7B)
Baltic Dry Index:	2000	na	11700	663
Bullish %:	29	22	89	2
Insider Corporate Sellers:	3:1	na	235:1	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

Subscribe in a reader

IT NEVER RAINS IN SOUTHERN CALIFORNIA - IT POURS !: