Wednesday, August 31, 2011

Some key Points on why the Market may continue it's Rally

- Insiders are buying hard - 1.7bn worth of insider buying - highest since October 2008.
- 163 buybacks totally $39.7bn have been annoucnements - highest since February 2008.
- According to Trim Tabs there are 3 things missing for markets going lower -
1/ M&A activity
2/ Insider buying
3/ buybacks
As we have all 3 things firing, we should be bottoming based on what happened in 2008.

Yesterday consumer confidence collapsed from 59 to 44.5 - which is a contrarian indicator that we are near the bottom of the US market.