Thoughts

  • Corporate Insiders are dumping stocks. Here’s why you shouldn’t worry about this.
  • Citigroup’s Panic/Euphoria Model continues to register “euphoria”. Watch out in 2019.
  • Initial Claims are still trending lower. A medium-long term bullish sign for the stock market and economy.
  • Continued Claims are still trending lower. A medium-long term bullish sign for the stock market and economy.
  • Commercial hedgers (smart money) are extremely bullish on gold and silver.

    • 1 am: Corporate Insiders are dumping stocks. Here’s why you shouldn’t worry about this.

    A recent Bloomberg article caught my eye:

    In other words, corporate insiders (who are supposedly “smart money”) are dumping their stocks even as their companies conduct massive share buybacks.

    Is this bearish for the stock market? No. I would ignore this. Corporate Insiders are not “smart money”. They’re good at running their companies, not trading their stocks.

    In fact, corporate insiders have been “dumping” their stocks pretty much throughout the entire course of this bull market.

  • July 2018 from CNN: “CEOs are dumping stock in their companies. Here’s what that means”
  • February 2017 from CNBC: “Companies are dumping stocks at levels ‘rarely seen’, report indicates”.
  • March 2015 from Market Watch: “Tech insiders dumping stocks as their companies buy them back”
  • March 2014 from Market Watch: “In-the-know insiders are dumping stocks”
  • August 2009 from Reuters: “Bears prowl Wall St as insiders dump stock”

    • Corporate insiders are neither better nor worse than your average mom-and-pop as market timers.

    1 am: Citigroup’s Panic/Euphoria Model continues to register “euphoria”. Watch out in 2019.

    Citigroup publishes a Panic/Euphoria Model (sentiment indicator). It continues to register “euphoria” for the second month in a row.

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