Skip to main content

See also:

January Sales

Although the overall market seems to be in at least a sideways Correctional phase, the Nasdaq hit a recent record high last week, while the others flatlined. As noted in my Sentiment blog:, "legal" Insider Sellers remained huge, but this week it came from Officers exercising their vested stock options, but then selling them (over 90%)!

Apparently this is a common practice at year end - at least the vesting of them. While it is hard to believe that after the Fed's non-secret intention to force people into the riskier securities markets, they would allow the investors to get creamed as they did in the first decade. Last week's money flows were slightly out, in MMFs and Equities (one week delay here), the public is definitely into stocks now, via mutual funds and ETFs throughout 2013. Any Crash would be unlikely with the handover to Ms. Yellen Feb.1, but who knows???? Stocks sold off after QEs 1 and 2 - will they after tapering?

Monthly data of ETF flows and margin debt ( a record $424B) should be out next week for December. Equities alone are just under $1T. Commercial hedgers from the COT (commitment of traders) remain net sellers, although Asia seems to be buying a lot. When it reverses, triple-strength gold ETFs, such as JNUG and NUGT might be worth a look, just as UPRO has been for the stock market- check the chart on that one!

Factoids you might have missed over the weekend, gleaned from Barron's, S.F. Chronicle, and Examiner (the other one!):

As of March, Caucasians will be the #2 minority in California; the state's 1% of Income Tax payers cough up 47% of the taxes, with 50% of the residents paying zero. Thank you Hollywood, Athletes, and Silicon Valley execs. Don't even think about moving to Texas, Nevada or Oregon. I doubt if too many pro athletes read this column, since, as Stephen Colbert reports, 60% of college athletes read at the 8th grade level. From the "How Do I Get A Job Like This?" department: Henriques de Castro, stolen away from Google by Ms. Mayer at Yahoo to be COO, was fired for inadequate results after a mere 14 months - severance pay was over $100 Million (8 zeroes). Makes Bernanke look cheap.

Thanks to the glorious stock (and bond) market and real estate recovery, U.S. household net worth has nearly double since 2009 - up $30T fro $80T. Total global stock market is now $62T in value, with bonds slightly higher at $85T.