1-For the last several years the stock market has rewarded investors in many stocks; however we always emphasize that from time to time, profits should be taken. Keep in mind that the largest percentage of the profits are taken by the professional traders and trading desks.       The market volume and direction  is dominated  by high frequency trading and hedge funds which are estimated to be 80% of the overall volume.  Over the last twenty years, trading volume has increased as a percentage of the overall volume. The market is heavily trader influenced. 2-We have expected the stock market to have suffered 20% to 25% corrections over the past five years each time to be followed by rallies to the upside, those corrections did not occur. Those normal corrections would have prevented the stock market from its current extremely high overall valuation for the overall stock market but also for many of the highly touted stocks. 3-Most importantly, severe corrections offer investors whether institutional or individual exceptional opportunities to invest in shares at lower prices while they are “on sale.” Unfortunately the stage is now set for another possible brutal bear market. We are not short sellers but various indicators strongly suggest caution and possibly a severe bear market.  Yet, we have many stocks that we will be buying if they decline to our buy levels. 4-We have said many times, odd as it may seem,  bull markets do not end due to overvaluation. They end with interest rates […]

 Last week officers and directors of major American corporations in merely the largest eleven reported sales transactions as required by law had a total value of One billion and six hundred and ninety nine million dollars worth of sales. That is $1,699,312,421.00 to be exact.     Conversely the largest ten insider purchases by insiders totaled $215,679,188.00   That was the largest one week total of officers and directors  (insiders) in market history as far as we could find. When that level of insider selling occured in the past, the stock market did coreect approximately 40%.   *** WHAT WE FIND SO DECEITFUL AND DEVIOUS IS THE FACT THAT RARELY DO THE INVESTMENT INDUSTRY, BUSINESS TELEVISION AND THE BUSINESS MEDIA EVER MENTION AMOUNT OF THE INSIDER SELLING. *** There is an ugly rumor that those daunting figures are not reported because they interfere with business and advertising, but that is just an ugly rumor-of course! Ugly rumors such as that bring tears to our eyes.