Chart of the Week

Why Lowest Interest Rates in 5,000 Years are Worrisome. The chart below from Bank of America Merrill Lynch contends interest rates are at their lowest going all the way back to 3,000 B.C. at the time of the pharaohs of the first dynasty of Egypt. Is that right? We do know for certain interest rates…

Major Increase in Selling by Insiders is Warning to Stock Market Investors.  Company insiders have superior knowledge of the direction of future company growth. Therefore they have advanced knowledge of where their companies’ stock price is headed. Recent insider selling is on pace for a two-decade high (see chart below). That should be ringing alarm…

Cash poor investors in September reduced their cash cushion. The latest AAII survey shows that individual investors in September reduced their cash cushion by quite a bit. They’re now holding only 14.6% of their portfolios in liquid instruments, among the lowest in 30 years. They’re not the only ones. Looking at other market players, it’s…

As Babak pointed out, the Smart Money Flow Index appears to be making a “divergence” with the stock market. This happened in 2018 as well, before stocks cratered.  *The Smart Money Flow Index assumes that the “smart money” trades in the last hour of each session and the “dumb money” trades in the first half hour of each…

Buy-back Blackouts Could Be Trouble For The Stock Market. Last week’s chart highlighted the fact that over the last several years corporations have been the dominant buyers in the market. In a few weeks, the corporate buyback blackout period will commence. Corporations are restricted as to when they can purchase. This restriction is based on when each…