Despite well-meaning attempts to satisfy everyone's wellbeing with uncharted DEBT - gov't, personal, student loan, etc. the last 3 regimes have encouraged gov't misdirected spending - even George W (who thought Roe vs. Wade was how to cross the Potomac River). Pensions and retirement accounts getting zero interest cannot possibly repay beneficiaries down the line, as people live longer and the workforce dwindles. The almighty Dollar has sunk from 100 pennies to @ 6 in the past 50 years and promises to end up in wheelbarrows as the Weimar Mark did.
The current market, albeit in vacation time, is dead in the water as to direction. Last week's Sentiment Indicators are exactly like the week before. The McClellan Oscillator, due to a weaker Advance/Decline week, prompted Monday's rally, sinking almost to my minus 50 Buy signal. If it doesn't work, we are in deep trouble!
The Calm before the storm scares me - the time of year, the aforementioned Fed and Election, DEBT.
Barron's Option column notes the great complacency of low Volatility in options - a good time to get Hedged!!
| Date> | 8/26/2016 | 8/19/2016 | |
| Indices: | DJIA | 18395 | 18552 |
| NAZ | 5218 | 5238 | |
| SPX | 2169 | 2184 | |
| WklyVolume (Bshs). | naz/ny…. | 7.9/3.7 | 8.2/3.9 |
| Specul.Ratio hi=bullish | 2.14 | 2.1 | |
| Sentiment: | put/call-CBOE | 67 | 58 |
| VIX>50-alltmlow=8.8 | 13.7 | 11.3 | |
| DeltaMSI-50% | MAC crossover | 73% | 73% |
| Advance/Dec-NYSE.. | 1413/1707 | 1666/1447 | |
| Weekly Net: | -294 | 219 | |
| Cumulative: | 172310 | 172604 | |
| Weekly | NYSE hi/low… | 409/29 | 410/25 |
| New Hi's/Low's | Nasdaq h/l | 364/75 | 383/81 |
| McClellan | Oscillator | -35 | -19 |
| McClellanSum | .+750/-1000 | 878 | 992 |
| Newsletter | Inv.Intel -Bull | 56.7 | 56.2 |
| Surveys-Tues | Bear:-5yrs | 20.2 | 20 |
| Wed. | AAII -Bull | 29.4 | 35.6 |
| Bear | 29.6 | 26.4 | |
| US$-WSJ | 94.7 | 94.5 | |
| 3-box rev | Bullish%- | 76 | 76 |
| US equity -ICI | Fund Flows | WeekLate | (5B) |
| MMF flows | Change in $B | 24.6 | (34.9B) |
| MargDebt- top (300M) | monthly | 447B | |
| 10-yr Tsy yield | hi= stock buying | 1.63% | 1.58% |
| 2-yr Tsy Yield: Inflation | 0.85% | 0.75% | |
| TIP (ETF) | Inflation | 116.5 | 116 |
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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