Exchanging Funds

According to Barron's last week, this iis the 9th year that funds have flowed from Mutual Funds to Index and ETFs (Exchange Traded Funds) as most managed funds fail to even equal their benchmarks - which contain all stocks in that category - good and bad. A study shows that the higher the U.S interest rates, the higher the "Alpha" - which is the gain over and above the benchmarks (Beta). So despite being a contrarian, against the crowd, it appears that this is still the best and easiest way to invest.

The Commitment of Traders (COT) shows a departure from smart money and "dumb" (small traders) with large going negative, versus small up 25k. Also , it shows commercial gold shorters still very high, although it seems to be rising recently into the 12-handle.

Here are the numbers:

Date>		1/9/2015	1/2/2015
Indices:	DJIA	17737	17833
	NAZ	4704	4726
	SPX	2044	2058
WklyVolume (Bshs).	naz/ny….	9.6/4.1	5.4/2.4
Specul.Ratio hi=bullish		2.34	2.25
Sentiment:	put/call-CBOE	65	66
VIX>50-alltmlow=8.8		17.5	17.8
Advance/Dec-NYSE..		1512/1748	1355/1893
Weekly Net:		-236	-538
Cumulative:		164418	164654
Weekly	NYSE hi/low…	413/202	413/86
New Hi's/Low's	Nasdaq h/l	196/159	287/116
McClellan	Oscillator	0	6
McClellanSum	.+750/-1000	323	376
Newsletter	Inv.Intel -Bull:tues	50.5	56.4
Surveys	Bear:-5yrs	15.2	14.9
	AAII  -Bull :wed.	41	51.7
	Bear	27.7	19.3
COT:SPX w/w	large/small (net)k	(1k)/25k	7K/21K
COT:gold  comm.hedg	long-short.000	(123k)	(105K)
CEOinsider	selling	.73:1	.17:1
off.&bd b/s.vs.	10% holder b/s	.160:30	160:20
3-box rev	Bullish%-	70	68
US equity -ICI	Fund Flows	WeekDelay	(.4B)
MMF flows	Change in $B	(18.6B)	19.4B
MargDebt- top (300M)	monthly	NOV	457B
ETF:mthlyEqty/	Int'l/Bond-$B	NOV	1221/434/296
2-yr Tsy Yield: Inflation		0.56%	0.68%
TIP (ETF)	Inflation	113.08	112.73

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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Exchanging Funds