Tough week, huh?
Any one would think the markets were suffering from the onset of schizophrenia the way they’ve been acting this week. One second, all is well. Buyers line up to chase the recovery. The next – buyers are swimming for the exits in a sea of red ink.
It didn’t help that consumer confidence fell unexpectedly to 47.7 in October from 53.4 in September thanks to worsening unemployment numbers… or that new home sales plunged 3.6%, as the effects of the temporary tax credits begin to die off.
Not exactly the kind of "confidence" you’d expect in a recovery, is it?
But don’t tell that to those buying anything that confirms the delusion of a "jobless" or "consumer-less" recovery…
Even corporate insiders know better than to chase this rally higher.
Insider selling just about tripled last week to $846 million, as insider buying came in at a pathetic $14.7 million from $32 million. That’s a clear message. Even insiders believe their company share prices are overvalued… and they’re cashing in before the next leg down that we have been calling for.