HOW HIGH THE MOON

Markets continue to make new highs almost every day and week, despite all the global calamities from elections, firings, to rockets. In a recent excellent webinar by Option King Larry McMillan, he not only analyzes the VIX Indicator and its misuse, but opines that if the S&P 500 breaks above the May 9 closing high of 2401 and closes twice above that, the market should resume its uptrend. FANG stocks are also propelling the NASDAQ to new highs, although Inflation Adjusted, it is not quite the case.It broke 5000 in March of 2000. BTW - today's close of the SPX was 2402 !!!

Sentiment Indicators remain mostly the same except for Mutual fund flows out instead of in last week; The I.I. Bull/Bear ratio stayed at its extreme of over 3:1 (normally a dangerous complacent signal). It was also noted that the NYSE Advance/Decline breadth numbers are not the best to use, as 30% of NYSE Volume nowadays is in ETFs, plus closed end funds, preferred stocks, etc.

Here are the numbers:

Date		5/12/2017	5/5/2017
Indices:	DJIA	20896	21006
	NAZ	6121	6100
	SPX	2390	2399
WklyVolume (Bshs).	naz/ny….	9.6/4.1	9.9/4.4
Specul.Ratio hi=bullish		2.34	2.25
Sentiment:	put/call-CBOE	61	66
VIX>50-alltmlow=8.8		10.4	10.5
DeltaMSI-50%	MAC crossover	55.4	60.3
Advance/Dec-NYSE..		1352/1626	1548/1535
Weekly Net:		-274	13
Cumulative:		176539	176813
Weekly	NYSE hi/low…	325/92	427/137
New Hi's/Low's	Nasdaq h/l	393/200	429/196
McClellan	Oscillator	-23	0
McClellanSum	.+750/-1000	545	609
Newsletter	Inv.Intel -Bull	58.7	58.5
Surveys-Tues	Bear:-5yrs	17.3	17.9
Wed.	AAII  -Bull	32.7	38.1
	Bear	30.2	29.9
US$-WSJ		99.2	98.6
3-box rev	Bullish%-	71	71
US equity -ICI	Fund Flows	WeekLate	(4.3B)
MMF flows	Change in $B	(6.2B)	1.6B
MargDebt- top (300M)	monthly	528B	March
10-yr Tsy yield	hi= stock buying	2.3	2.4
2-yr Tsy Yield: Inflation		1.3	1.31
TIP (ETF)	Inflation	113.8	113.7

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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HOW HIGH THE MOON