Ciao Carlo scordati nuovi massimi...non scherzo
ora ti metto un graf per farti capire..non di AT aspetta il commento dal mio abbonamento in inglese lo traduci 1 minuto lo preparo
he chart below tells the story from a long-term perspective. The top section shows price of the S&P 500.
The middle graph shows a "score" representing the ratio of insiders buying to selling; a high score indicates insider buying, and a low score means insiders are selling.
The bottom graph shows net volume (buys minus sales)...
Tracking insider sales is useful because it gives us a gauge on sentiment among top business execs.
When they're bullish on the economy and their company's prospects, insiders buy more.
With that in mind, a few things stand out here:
- Note how strong selling volume was from late 2005 to late 2007, as insiders sold at the top.
- And see how the buy ratio spiked from late 2008 to early 2009? Insiders nailed it again, buying near the market bottom.
The fact that insiders today are selling at record levels is big flashing sign: WARNING! Correction Ahead.
Then again, the Fed is goosing U.S. markets full force. Timidness will not be tolerated, as pitifully low bond and CD yields chase investors into riskier investments, retirees be damned.
So while insider sales do look bad, there are other factors to consider. Like the Fed. The liquidity they are pumping into the banks will help prop up stock prices, at least temporarily.
But the macro concerns continue to mount, chief among them the EU debt disaster.
European debt hits home
After months of pressure, Ireland has been coerced into accepting an aid package. Although, calling it an aid or "rescue" package is a bit of a stretch...
The Irish people are not the real "rescuees" in this operation; banks are the ones being rescued, as they refuse to take losses on their Irish debt.
Ireland cannot pay its debts, just as Greece cannot short an economic miracle.
They should default on their bonds and force the ones who lent the money to take losses.
Instead, the debt risk will be shuffled around, and generally transferred from banks to Irish citizens. They'll be paying for it for decades.
As we know, modern economic theory dictates that bond investors should not be held liable for bad investments. The fact that this violates every principle that makes capitalism work is a moot point, seemingly.
Unfortunately, there are other (and significant) clouds looming over the world economy...