HEDGE FUN

Thanks to a surprising huge rally Friday, the week came up positive for most markets, despite the worst retracement in months - hopefully that was enough of a respite. Technicians, on the other hand, require a filter of more time (3-4 days" closes beyond a technical break), etc. to resume trend.

With August recently being a weak market month, and Sept.-Oct. even moreso, it would seem advisable to employ hedges on existing portfolios throughout this period, until the election. For more, see:    http://www.examiner.com/stock-market-in-san-francisco/brent-leonard

The resumption of uptrend also  quieted down Sentiment Indicators, including the VIX, which jumped on the downturn.
MMF (money market flows) reversed from outflows the week before to inflows. AAII  Bears dominated for a change, and the McClellan Summation (of the Oscillator) is nearing the zero line - for what that is worth. Just as the SPX bounced up off the 1900 mark after failing to reach the 2000 barrier.
Here are the numbers for last week:

Date>		8/8/2014	8/1/2014
Indices:	DJIA	16553	16493
	NAZ	4370	4352
	SPX	1931	1925
WklyVolume (Bshs).	naz/ny	8.9/3.4	9.9/3.6
Specul.Ratio hi=bullish		2.6	2.8
Sentiment:	put/call-CBOE	69	68
VIX>50-alltmlow=8.8		15.8	17
Advance/Dec-NYSE..		1987/1239	484/2772
Weekly Net:		750	-2288
Cumulative:		162220	161470
Weekly	NYSE hi/low	106/196	260/191
New Hi's/Low's	Nasdaq h/l	94/253	149/254
McClellan	Oscillator	-20	-89
McClellanSum	.+750/-1000	11	287
Newsletter	Inv.Intel -Bull:tues	50.5	55.6
Surveys	Bear:-5yrs	17.1	16.2
	AAII  -Bull :wed.	30.9	31.1
	Bear	38.2	31.1
COT:SPX w/w	large/small (net)k	(2)/5	.3/5
COT:gold  comm.hedg	long-short.000	(132k)	(149k)
CEOinsider	selling	22:1	22:1
off.&bd b/s.vs.	10% holder b/s	150:30	175:25
3-box rev	Bullish%-	70	74
US equity -ICI	Fund Flows	WeekDelay	(8.9B)
MMF flows	Change in $B	12.8B	(8.8B)
MargDebt- top (300M)	monthly		464B
ETF:mthlyEqty/	Int'l/Bond-$B		1116/440/274
2-yr Tsy Yield: Inflation		0.45%	0.48%

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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HEDGE FUN