I apologize that I have been away a little while from this Blog due to some changes in my personal circumstances. Hopefully, I will be able to find more time soon to be posting my market observations on this forum. Also, readers of this Blog should not forget that my website maintains a message board forum for active traders who rely heavily on charting. It’s a good forum to follow and learn more about what the charts are saying!
Okay…here’s another interesting observation…!
I think this past week may be closing in on a multi-year high in the Barron’s
Insider Ratio chart! (I have been following this index for about 4
From my previous observations, when the index spurts over 20
for two or more weeks, you can almost bet on a pullback in stocks within
the next 2 months of that occurrence. In other words, the pullback may
already be under way as this is the 3rd straight week of over 20
readings….and this spike up to near 50 is near a multi-year high! (My recollection is that it hit around 60 a a few months before the 2008 meltdown–I would have to check my old news clippings on this!)
I noted on Thursday night in my message to SUBSCRIBERS, the WEEKLY TICK had gone very negative,
and it appears the BIG BOYZ and INSIDERS are running for the exits….and
leaving the little guys (gulp, us!) holding the bag! Well, not this little guy! Lol! I’m already well-hedged and probably going net short this next week, unless we get a bounce off the cup breakout pivot from last week?
By the way, I am a long-time subscriber to Barron’s, and if you want to get educated on how the markets really work, I do recommend that you explore their site or buy a newspaper subscription from them!