Recently I have been advising family and friends to invest for the long haul using either Vanguard or Schwab INDEX funds, preferably dividend ones. Fees from managed funds can eat up your retirement $$ all the way up to 66% going to them - per a Frontline program recently aired. Compounding annual fees! In fact, last week a spokesperson for S&P IQ (Standard & Poors staff) stated in an interview that the average managed mutual fund underperformed the Index 77 to 81% of the time since 2000; even small cap funds were weaker; and even in high volatility times - such as 2000 and 2008 they gained less.
With stocks regressing back to zero for the year last week (not counting today) Sentiment extremes looked hopeful. Contrarians like small traders increasing shorts to 40k, up from 22k; Insider selling by CEOs fell sharply from 71:1 over buyers to 20:1, even during Income Tax time.
Finally, mutual fund assets swung from $18B outflows to $18B inflows.
Here are last week's numbers:
| Date> | 3/13/2015 | 3/6/2015 | |
| Indices: | DJIA | 17749 | 17856 |
| NAZ | 4871 | 4927 | |
| SPX | 2053 | 2071 | |
| WklyVolume (Bshs). | naz/ny…. | 9.0/3.9 | 9.3/3.8 |
| Specul.Ratio hi=bullish | 2.33 | 2.45 | |
| Sentiment: | put/call-CBOE | 69 | 6 |
| VIX>50-alltmlow=8.8 | 16.0 | 15.2 | |
| Advance/Dec-NYSE.. | 1411/1834 | 843/2411 | |
| Weekly Net: | -423 | -1568 | |
| Cumulative: | 164739 | 165162 | |
| Weekly | NYSE hi/low… | 180/222 | 362/98 |
| New Hi's/Low's | Nasdaq h/l | 236/166 | 308/125 |
| McClellan | Oscillator | -38 | -47 |
| McClellanSum | .+750/-1000 | 382 | 586 |
| Newsletter | Inv.Intel -Bull:tues | 53.6 | 58.7 |
| Surveys | Bear:-5yrs | 14.1 | 14.1 |
| AAII -Bull :wed. | 31.6 | 39.8 | |
| Bear | 25.4 | 23.4 | |
| COT:SPX w/w | large/small (net)k | 1k/(42k) | 2k/(22k) |
| COT:gold comm.hedg | long-short.000 | (89k) | (123k) |
| CEOinsider | selling | .20:1 | .71:1 |
| off.&bd b/s.vs. | 10% holder b/s | .160:45 | .160:35 |
| 3-box rev | Bullish%- | 71 | 75 |
| US equity -ICI | Fund Flows | WeekDelay | (1.9B) |
| MMF flows | Change in $B | 18.2B | (18.6B) |
| MargDebt- top (300M) | monthly | ||
| ETF:mthlyEqty/ | Int'l/Bond-$B | ||
| 2-yr Tsy Yield: Inflation | 0.66% | 0.73% | |
| TIP (ETF) | Inflation | 111.51 | 111.97 |
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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