After two market crashes since 2000, people want to avoid stocks and increase savings due to lower rates; if people are $aving, they are not $pending, ergo corporations are not expanding! Thus a sluggish Economy!
Last weeks flip-flops in Sentiment included the NYSE Advance/Decline - +900 to -600; therefore the McClellan Oscillator went from +20 to -20 as well, although the NYSE New Highs to Lows were almost 10:1 (see below). Commercial shorts in Gold expanded again, so no rise in sight; this week I also added COT OIL traders, with a heavily short position, and the US $, in a Wall St journal Index (not the basket one usually sees, which topped out recently. Finally, MMF (money market) flows were hugely negative. $$ flowing into ETFs outnumber managed mutual funds 15 to 1!
Here are the numbers:
|New Hi's/Low's||Nasdaq h/l||294/102|
|COT:SPX w/w||large/small (net)k||10k/(8k)||10k/(9k)|
|off.&bd b/s.vs.||10% holder b/s||.150:20||.160:30|
|US equity -ICI||Fund Flows||WeekDelay||(1.3B)|
|MMF flows||Change in $B||(39B)||0|
|MargDebt- top (300M)||monthly|
|2-yr Tsy Yield: Inflation||0.51%||0.56%|
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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