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Economy
In reply to the discussion: STOCKMARKET WATCH -- Wednesday, 11 July 2012 [View all]xchrom
(108,903 posts)45. nsiders betting on a correction
http://www.marketwatch.com/story/insiders-betting-on-a-correction-2012-07-11?dist=beforebell
In yesterdays column, in fact, when arguing that light volume was not something to worry about, I mentioned a far more legitimate cause for concern: The excessive levels of bullishness that prevail currently among investment advisers. ( Read my July 10 column, Should you sell a dull market short? )
In falling sharply Tuesday on higher volume, the stock market dutifully illustrated my point.
Unfortunately for stocks, the market has more to worry about than just too-high-levels of bullishness. Another thing thats far more worrisome than the to-be-expected light summer trading volume is the recent behavior of corporate insiders. Last week, for example, they sold more of their companies shares, relative to their purchases, than in any week since the early May bull market high.
That means that the insiders, who presumably know more about their companies' prospects than do the rest of us, are betting that stocks have gotten as far ahead of themselves now as they were at the bull markets high.
In yesterdays column, in fact, when arguing that light volume was not something to worry about, I mentioned a far more legitimate cause for concern: The excessive levels of bullishness that prevail currently among investment advisers. ( Read my July 10 column, Should you sell a dull market short? )
In falling sharply Tuesday on higher volume, the stock market dutifully illustrated my point.
Unfortunately for stocks, the market has more to worry about than just too-high-levels of bullishness. Another thing thats far more worrisome than the to-be-expected light summer trading volume is the recent behavior of corporate insiders. Last week, for example, they sold more of their companies shares, relative to their purchases, than in any week since the early May bull market high.
That means that the insiders, who presumably know more about their companies' prospects than do the rest of us, are betting that stocks have gotten as far ahead of themselves now as they were at the bull markets high.
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