INCORRECT IN JUNE

According to Schwab's Liz Ann Sonders, since 1962 there has been a CORRECTION of at least 9% in every mid-term election year, such as the present one. So far into 2014, now half way through, the largest was the immediate 5.7% in early February, and ending the semi-annual period up 6.3% YTD.
June was to be the worst month based on years going back to 1945, with May, August and September close behind.

So far this year the Sentiment numbers. like the VIX, tend to make one's eyes glass over- last week was no exception. May's totals for ETFs continue to grow to record highs (see below), and the monthly margin debt drop again, although still high, with zero interest rates. Both sets of Insider trading (legal) remain high, but differed when looked at by Sectors (52 to 1 sellers), or individuals ( officers and 10% stakeholders).   Also high once more - Commercial sellers of Gold, perhaps quarter-ending action.

Breadth (advance/decline and new highs/lows) remain strong - the latter 10 to 1- Wire House Bulls stay above 60% and Bears in the low 20s. Here are the numbers:

Date>		6/27/2014	6/20/2014
Indices:	DJIA	16851	16947
	NAZ	4397	4368
	SPX	1960	1962
WklyVolume (Bshs).	naz/ny	9.5/3.9	9.6/4.2
Specul.Ratio hi=bullish		2.44	2.29
Sentiment:	put/call-CBOE	53	47
VIX>50-alltmlow=8.8		11.3	10.9
Advance/Dec-NYSE..		1817/1414	2243/973
Weekly Net:		403	1270
Cumulative:		164063	163660
Weekly	NYSE hi/low	556/66	574/51
New Hi's/Low's	Nasdaq h/l	224/98	278/90
McClellan	Oscillator	13	16
McClellanSum	.+750/-1000	1000	983
Newsletter	Inv.Intel -Bull:tues	60.2	61.4
Surveys	Bear:-5yrs	16.3	16.3
	AAII  -Bull :wed.	37.2	35.2
	Bear	21.1	24.1
COT:SPX w/w	large/small (net)k	.6/6	12/(11)
COT:gold  comm.hedg	long-short.000	(131k)	(75k)
CEOinsider	selling	52:1	17:1
off.&bd b/s.vs.	10% holder b/s	175:20	175:35
3-box rev	Bullish%-	83	84
US equity -ICI	Fund Flows	WeekDelay	(1.8B)
MMF flows	Change in $B	5B	(31B)
MargDebt- top (300M)	monthly	428B
ETF:mthlyEqty/	Int'l/Bond-$B	1069/428/276
2-yr Tsy Yield: Inflation		0.46%	0.46%

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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INCORRECT IN JUNE