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: