BOTTOMS UP?:

Several Indicators are intimating to me that we may have reached a temporary shelf off the S&P 1260 200MA (11,800 on the DJIA). With a choppy week like a puppy shaking a rag doll every day, the McClellan Summation fell through the zero line for the first time in years; the Oscillator hit -63 the week before and is still negative; what also stood out is the CBOE Equity put/call ratio at 93! Bearish ON the market but Bullish FOR it. The AAII Bull/Bear ratio is still inverted, although the Inv.Intell. is not - thanks to a reader I have found a website that carries the I.I.

Finally, big money is coming out of both MMFs and Equity funds on a weekly basis. And although the legal Insider Selling is well of the record of 235:1 recently, it is high at 62:1. For some unknown reason the Technology selling of key officers is HUGE - over $700M for the second week in a row - I know college is expensive, but... Shortly behind is Consumer Services, over $400M. For years, total sales of all the 10 sectors rarely exceeded $700M.
 
EVERYONE is forecasting an UP yearend, even the good projectors - due to corporate earnings and values; still we are in the JASON semi-annual cycle (June,August,Sept.,Oct.,Nov.). In my mind, the DITM (deep-in-the-money) strategy that I have been successfully testing for over 2 years, is the optimal strategy for this time of the investment cycle:  a Wyckoff selloff, entering a Trading Range where stock prices are lower, dividend %s are higher, and option Volatility is also raised with the selloff - see www.ditmcalls.blogspot.com for recent and historic trading results.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	12004	11951	14093	6626
Nasdaq:	2616	2643	2861	1114
S&P 500:	1271	1270	1561	683
CBOE Eq. put/call:	93	86	96-10/08	46-1/03
VIX:	21.9	18.9	90	8.8
McClellan Osc:	(31)	(68)	108	(123)
McClellan Sum:	(41)	181	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	37	40.9	63	22.21
InvestorsIntel.Bear:	26	22.6	54.4	16
AAII Bull:	29.0	24.4	n/a	n/a
AAII Bear:	42.8	47.7	n/a	n/a
US Equity-1 week lag	n/a	(5.5B)
Money Market Flows	(34.4B)	15.9B
Baltic Dry Index:	1423	1418	11700	663
Bullish %:	60	64	89	2
Insider Corporate Sellers:	62:1	48:1	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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BOTTOMS UP?: