LOCK THE DOORS !:

Don't call Congress back! Technical studies show the markets do much better when Congress is out of session (of course, this is mostly due to Holidays). MIT studies also show that not only do persons with positive attitudes lead happier and healthier lives, but are better at investing - with sharper intuition. And Felix Salmon of Reuters notes that longer term investors should welcome corrections such as these - for dollar cost averaging and mutual fund reinvesting, the lower the better. Also, bubbles such as tech stocks, Real Estate, Gold (?) usually end up badly without a respite. BTW - the CME is raising margin requirements on Gold, just as they did with silver.
Sentiment conditions still remain oversold and indicating  a strong rally: the NASD to NYSE Volume is near record lows; NYSE new highs were an incredible 20 to 1510 new lows for the week; the McClellan Summation is now negative 621.
Legal insider selling is way low at 4:1, after weeks in the 50's and 60's to 1 buyers. Money market flows did a huge flip flop the past two weeks: 66B out, then 53B back in last week (but not into stock funds). Finally, the Bullish % is at a lowly 23% of stocks on buy signals.
Here are the weekly numbers:

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	11269	11444	14093	6626
Nasdaq:	2507	2532	2861	1114
S&P 500:	1178	1199	1561	683
CBOE Eq. put/call:	85	85	96-10/08	46-1/03
VIX:	36.4	33.0	90	8.8
McClellan Osc:	(8)	(111)	108	(123)
McClellan Sum:	(621)	(275)	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	47.3	46.3	63	22.21
InvestorsIntel.Bear:	23.7	24.7	54.4	16
AAII Bull:	33.4	27.2	n/a	n/a
AAII Bear:	44.8	49.9	n/a	n/a
US Equity-1 week lag	n/a	(10.4B)
Money Market Flows	52.8B	(65.8B)
Baltic Dry Index:	1287	1268	11700	663
Bullish %:	23	30	89	2
Insider Corporate Sellers:	4:1	14:1	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

Subscribe in a reader

LOCK THE DOORS !: