Thanks to strong defenses, Peyton Manning looked more like Bradley Manning, and Cam the Avatar looked like a deer in the headlights. Half time was much better to watch.
Back to the Dow(n) Jones. DIA and SPX down 14% from their 2015 highs (where's the FED?).
For weeks now I've been touting the TVIX as a hedge (a 3X VIX ETF that goes up when stocks drop) . It has doubled from 6 to 12 just this year ($6 to 12); in last Sept.'s market drop it went to $20!! (No guarantees). Then the VIX went above 50 (now at 28).
Another triple-strength ETF I've held thru thick and thicker, is the NUGT - 3X the GDX gold miners. That has gone from @$20 this year to $48, and was $150 last May on a Gold Spike. Volatility in the options (IV) is huge, so you should sell them not buy them (sell puts, or covered calls, both of which I've done).
Another extreme recently - the 2-year Treas. note went from a recent high yield of 1.06% to today's 0.66% in a rush to safety. Last week the CBOE put/call was high at 78 and the Bull/Bear surveys inverted to Bearish (ON the market), but that did not help stocks today. Nasdaq New Lows were 10:1 last week.
Here are the numbers:
|New Hi's/Low's||Nasdaq h/l||54/464||45/389|
|US equity -ICI||Fund Flows||WeekLate||(6.2B)|
|MMF flows||Change in $B||(4.2B)||13.8B|
|MargDebt- top (300M)||monthly||DEC.||461B|
|2-yr Tsy Yield: Inflation||0.73%||0.78%|
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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