As a contrarian I should not have been surprised that today's market acted opposite from what I thought after 60 Minutes excellent coverage of Michael Lewis's "Flash Buys" interview (and book) on the "rigging" of the stock market by HFTs (High Frequency Traders)! Although many people are addressing this problem, it doesn't really affect long term investors very much, or even swing/position traders; but hopefully, as with the Bitcoin time lag, regulators can fix this inequity.
More on equity returns at my Examiner.com column: http://www.examiner.com/stock-market-in-san-francisco/brent-leonard.
Sentiment and Breadth extremes last week included the monthly figures of ETF flows, all increasing to recent record highs: domestic equity, Int'l, and Bonds, although MMF (money market) outflows lessened. Margin debt again hit new highs, but as reported elsewhere, this is a common occurrence (until it doesn't). As shown below, most other indicators are within range:
| Date> | 3/28/2014 | 3/21/2014 | |
| Indices: | DJIA | 16323 | 16302 |
| NAZ | 4155 | 4276 | |
| SPX | 1857 | 1866 | |
| WklyVolume (Bshs). | naz/ny | 11.4/3.6 | 10.5/4.4 |
| Specul.Ratio hi=bullish | 3.17 | 2.39 | |
| Sentiment: | put/call-CBOE | 61 | 57 |
| VIX>50-alltmlow=8.8 | 14.4 | 15 | |
| Advance/Dec-NYSE.. | 1485/1713 | 1940/1258 | |
| Weekly Net: | -228 | 682 | |
| Cumulative: | 157313 | 157541 | |
| Weekly | NYSE hi/low | 213/64 | 337/65 |
| New Hi's/Low's | Nasdaq h/l | 161/110 | 350/59 |
| McClellan | Oscillator | -10 | -12 |
| McClellanSum | .+750/-1000 | 768 | 897 |
| Newsletter | Inv.Intel -Bull:tues | 54.7 | 52 |
| Surveys | Bear:-5yrs | 17.5 | 17.4 |
| AAII -Bull :wed. | 31.2 | 36.8 | |
| Bear | 28.6 | 26.1 | |
| COT:SPX w/w | large/small (net)k | 7k/24k | 9k/(31k) |
| COT:gold comm.hedg | long-short.000 | (127k) | (146k)nh |
| CEOinsider | selling | 25:1 | 25:1 |
| off.&bd b/s.vs. | 10% holder b/s | 200:40 | 140:50 |
| 3-box rev | Bullish%- | 72 | 76 |
| US equity -ICI | Fund Flows | WeekDelay | (3.8B) |
| MMF flows | Change in $B | (3.2B) | (31B) |
| MargDebt- top (300M) | monthly | 466B | |
| ETF:mthlyEqty/ | Int'l/Bond-$B | 1035/397/266 | |
| 2-yr Tsy Yield: Inflation | 0.45% | 0.45% | |
| InsiderTotal: | 50exer. | ||
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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