Storm Clouds

Traders in the stock market may want to think about hedging or at least watching stocks closely - we've had a great runup for 6 years (first time in history?). Several smart people are echoing this - Bill Gross says we have plateau'd; Jim Bianco sees economy slowing short term - snowstorms, dock strikes, lower oil earnings. Earnings forecasts as as negative as 2008 !!; the PMI index (Purchasing managers ) as low as '09.

On the plus side - Steve Sears of Barron's echoes my thoughts of stocks rising as interest rates do - before, during and after; our friend from the north (Santa Rosa) Charles Biderman of Trim Tabs says a record stock buyback happened in Feb.

Sentiment-wise - Today's bounceback reaffirms my McClellan Oscillator oversold number at -47 (usually around minus fifty in this short term Advance/Decline chart calls for at least a bounce; Gold is still seeing huge short sellers, and the 2-year Treas. yield jumped to a near record of 0.73, but the TIPs dropped over two points.

Here are the numbers:

Date>		3/6/2015	2/27/2015
Indices:	DJIA	17856	18132
	NAZ	4927	4963
	SPX	2071	2104
WklyVolume (Bshs).	naz/ny….	9.3/3.8	9.2/3.7
Specul.Ratio hi=bullish		2.45	2.49
Sentiment:	put/call-CBOE	6	63
VIX>50-alltmlow=8.8		15.2	13.3
Advance/Dec-NYSE..		843/2411	1714/1541
Weekly Net:		-1568	173
Cumulative:		165162	166730
Weekly	NYSE hi/low…	362/98	419/55
New Hi's/Low's	Nasdaq h/l	308/125	343/98
McClellan	Oscillator	-47	9
McClellanSum	.+750/-1000	586	643
Newsletter	Inv.Intel -Bull:tues	58.7	59.5
Surveys	Bear:-5yrs	14.1	34.1
	AAII  -Bull :wed.	39.8	45.4
	Bear	23.4	20.3
COT:SPX w/w	large/small (net)k	2k/(22k)	2k/(16k)
COT:gold  comm.hedg	long-short.000	(123k)	(136k)
CEOinsider	selling	.71:1	.68:1
off.&bd b/s.vs.	10% holder b/s	.160:35	.150:30
3-box rev	Bullish%-	75	74
US equity -ICI	Fund Flows	WeekDelay	0
MMF flows	Change in $B	(18.6B)	10.3B
MargDebt- top (300M)	monthly		445B
ETF:mthlyEqty/	Int'l/Bond-$B		1219/424/308
2-yr Tsy Yield: Inflation		0.73%	0.63%
TIP (ETF)	Inflation	111.97	114.06

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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Storm Clouds