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Friday, March 10, 2017

Daily update 3/10 Insider buying (or lack of)

Bounce attempt started.

SPX closed above the highs of the last four days.  Breadth was +65%.  New highs increased a bit to 71,  New lows dropped considerably to 63.  The sellers came out right on the open on the gap up.  I guess some people did not find the employment report comforting.  The bulls didn't get control back until after 1:00.  The market rallied through the afternoon and closed near the afternoon high.  That looks like a positive setup for Monday. 

The futures have green price bars so they are trying to turn up.  They have not broken the 20 SMA yet though. 

The red count dropped considerably today. That is good for bulls in the short term.

Next week is option expiration which usually has a bullish bias.  SPX looks set up for a bounce off the 20 DMA.  The short term oversold condition could provide a little fuel to retest the high.

There has been a number of times in this bull market when insider selling picked up considerably and generated some press about it being worrisome.  None of those times really talked about a lack of insider buying that I can recall.  This may be different.  Fewer Corporate Insiders Are Buying Their Own Stocks Than At Any Point In 29 Years

According to the Washington Service, there were a total of 279 insider buyers in January, the lowest since 1988.  Moreover, the number of sellers has also grown in recent months, pushing the ratio of buyers to sellers in February to its lowest since 1988 as well.

 Some times in life you just have to get up and dance!


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