Monday, April 11, 2016

ETFs - WTF?

This week's Barron's financial magazine profiled the best of Dividend ETFs and Schwab's came out on TOP! I've been recommending this one-  SCHD - for my family and those who are not zoned in on the investment scene. Regular contributions benefit from compound interest - the 8th Wonder of the World - especially if the market drops (buying more shares!).

Also #1 on the list of first quarter ETFs/stocks: the NUGT, which is 3 X the DGX ETF, or gold miner stocks. It was up 140% and is still rising. The huge Volatility cuts both ways - Up and Down, so it is quite dangerous, if not hedged . However, using my DITM (deep-in-the-money covered calls) lessens the risk.

Finally, another highly recommended choice - CEFs or Closed-End Funds (munis) -which  I've owned and recommended for years, are both lucrative and relatively safe.

All of these could unwind (temporarily) When (not If) the stock market tanks - which is why I recommend another 2 X ETF - the TVIX, which "should" rise dramatically as stocks tank. Handle with Care!
Last week's extreme Sentiment Indicators were again mixed, with the 2-year Treas. dropping while the TIP hit new recent highs; the dollar is dropping - helping both gold and U S stocks overseas.
Here are the numbers:
Date> 2016 4/8/2016 4/1/2016
Indices: DJIA  17576 17792
  NAZ  4850 4914
SPX  2047 2072
WklyVolume (Bshs). naz/ny…. 8.6/4.5 8.4/4.5
Specul.Ratio hi=bullish 1.97 1.87
Sentiment: put/call-CBOE  68 64
VIX>50-alltmlow=8.8 15.4 13.1
DeltaMSI-50% MAC crossover 74% 71%
Advance/Dec-NYSE.. 1225/1958 2299/889
Weekly Net: -733 1410
     Cumulative: 163243 163976
Weekly  NYSE hi/low… 277/47 376/31
New Hi's/Low's Nasdaq h/l 126/91 159/105
McClellan  Oscillator -17 13
McClellanSum .+750/-1000 940 1075
Newsletter Inv.Intel -Bull 45.4 43.3
Surveys-Tues Bear:-5yrs 27.8 28.9
Wed. AAII  -Bull  32.2 27.2
Bear  21.5 25.8
US$-WSJ 94.2 94.6
3-box rev Bullish%-  76 79
US equity -ICI Fund Flows weekLate (3.7B)
MMF flows Change in $B (26.7B) 13.9B
MargDebt- top (300M) monthly  436B
2-yr Tsy Yield: Inflation 0.70% 0.74%
TIP (ETF) Inflation 116 114.7


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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