It's Greek To Me

From the Cradle of Democracy, with Socrates, Plato and marble-mouth Demosthenes, Greece has not evolved like other democracies. With only 11 million people - three times the population of Puerto Rico (AKA Rich Port!! ; and a territory of Ame-rica -Rich Friend ), despite all the Deadlines, nothing has been resolved. Deadlines just become Headlines for the media. Nearly 50% of their citizens are below the Poverty line - talk about Income Inequality.

It does seem to have some effect on markets, however - Sentiment last week showed a huge increase in CBOE put/call volume. Just as with last Sundays futures of US stocks, there was another drop of 300 points on the DJIA, which was wiped away today, unlike last Monday's 350 decline.

Although investors are still rushing to Index ETFs and funds, they are abandoning dividend-paying stocks, with the hope of interest rates rising in September. The Bullish percent - stocks on a Buy signal- have receded to last October's level. Despite wild swings lately, 2015's first half has been one of the quietest Volatility swings (< 4%) for the 11th time in 60 years for the SPX (500). What bodes well, is that the previous 10 times the stock market double its average for the second half -positive every time! The average was 7%, over the 3.6% usual number until January.

Even with the positive Holiday looming, Breadth was terrible (negative 4 digits), and new highs/lows went negative. As for the Bull/Bears, the AAII individual survey took a wild swing south, reversing the complacent ratio of 35-22 from the prior week. Finally, the monthly figures for margin debt stayed basically the same (unlike China!!), and ETF flows also remained highs - see below:

Date>		7/3/2015	6/26/2015
Indices:	DJIA	17730	17946
	NAZ	5009	5080
	SPX	2076	2101
WklyVolume (Bshs).	naz/ny….	7.3/3.6	9.2/4.7
Specul.Ratio hi=bullish		2.03	1.96
Sentiment:	put/call-CBOE	78	61
VIX>50-alltmlow=8.8		16.8	14
Advance/Dec-NYSE..		977/2260	1262/1992
Weekly Net:		-1283	-730
Cumulative:		164133	165416
Weekly	NYSE hi/low…	115/514	312/269
New Hi's/Low's	Nasdaq h/l	160/255	401/149
McClellan	Oscillator	-12	-19
McClellanSum	.+750/-1000	-328	-208
Newsletter	Inv.Intel -Bull	49.5	51.6
Surveys-Tues	Bear:-5yrs	15.4	15.4
Wed.	AAII  -Bull	22.6	35.6
	Bear	35.1	21.7
COT:SPX w/w	large/small (net)k	n/a	9k/(8k)
COT:gold  comm.hedg	long-short.000	n/a	(101k)
COT:OIL comm.hedg	long-short.	n/a	(335k)
US$-WSJ		87.1	86.7
CEOinsider	selling	n/a	9:1
off.&bd b/s.vs.	10% holder b/s	discont.	160/50
3-box rev	Bullish%-	57	61
US equity -ICI	Fund Flows	week delay	n/a
MMF flows	Change in $B	13B	2.7B
MargDebt- top (300M)	monthly	499B
ETF:mthlyEqty/	Int'l/Bond-$B	1268/525/320
2-yr Tsy Yield: Inflation		0.63%	0.72%
TIP (ETF)	Inflation	112.13	111.44

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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It's Greek To Me