MUCH ADO ABOUT NOTHING

Lots of Volatility last week, but going nowhere fast. Or as Yogi Berra once said: "We're lost but making good time". Pick whatever Fundamental reason you like - Yellen, short covering, Oil, - the end of the week turned right around again, and looks to resume the upward move in this shortened week.
As GGU's Dr. Hank Pruden pointed out in last Saturday's excellent fact-filled 2-hour promo for his upcoming class - Double Helix Power of Combining Wyckoff and Elliott Wave Method, except for the DJIA, markets have been making lower lows - not a good sign.

As shown below, both newsletter surveys (which report Tues. and Wed.) report large numbers of BEARS (Bullish FOR the market). And with the rest of the globe going to Negative interest rates, holding Gold with no dividends isn't such a bad idea, especially if it is oversold these past months.
Even the 2-year Treas. yield is dropping fast - from above 1% recently to 0.71%.

Finally, since writing my book on DITM ( Deep-In-The-Money) covered call options in 2010, the current environment looks like the best it's been since then: quality stock prices have dropped bigtime; which makes the dividend yield that much higher; and dropping prices makes huge increases in the IV (Volatility) of call options, which one is selling. Being ITM also gives a nice cushion for the stock to drop even further.

Here are the numbers from last week:

Date>	2016	2/12/2016	2/5/2016
Indices:	DJIA	15973	16204
	NAZ	4337	4363
	SPX	1864	1880
WklyVolume (Bshs).	naz/ny….	12.3/6.1	11.2/5.6
Specul.Ratio hi=bullish		2.01	2
Sentiment:	put/call-CBOE	83	78
VIX>50-alltmlow=8.8		25.4	23.4
Advance/Dec-NYSE..		728/2476	1072/2133
Weekly Net:		-1748	-1061
Cumulative:		155343	157091
Weekly	NYSE hi/low…	144/978	197/378
New Hi's/Low's	Nasdaq h/l	31/920	54/464
McClellan	Oscillator	-4	15
McClellanSum	.+750/-1000	-668	-560
Newsletter	Inv.Intel -Bull	24.7	34
Surveys-Tues	Bear:-5yrs	39.2	38.1
Wed.	AAII  -Bull	19.2	27.6
	Bear	48.7	34.7
US$-WSJ		96	97
3-box rev	Bullish%-	30	38
US equity -ICI	Fund Flows	WeekLate	2.3B
MMF flows	Change in $B	3.2B	(4.2B)
MargDebt- top (300M)	monthly	461B	DEC.
2-yr Tsy Yield: Inflation		0.71%	0.73%
TIP (ETF)	Inflation	111.6	111.4

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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MUCH ADO ABOUT NOTHING