In today’s briefing:
- A Powerful New Bull? Don’t Bet On It!
- The Secret Lives of Corporate Insiders
A Powerful New Bull? Don’t Bet On It!
- The tone of stock market action has become more constructive, but the jury is still out as to whether the latest advance is the start of a V-shaped bottom.
- Fundamentally, we are monitoring the evolution of earnings estimates as the Q2 earnings season progresses.
- From a technical perspective, durable advances are accompanied by strong price momentum, which the bulls haven’t demonstrated yet.
The Secret Lives of Corporate Insiders
- For much of this year, corporate insiders have been buying dips in the stock market. The purchases have occurred in the face of growing recession risk and apparent challenging valuations.
- Insiders have good reasons to be bullish. Valuations are reasonable and there are good pockets of value in the stock market, which are concentrated mainly in the large-cap NASDAQ 100.
- From a technical perspective, the bull case for equities is institutions and hedge funds have all sold and the only sellers left are retail investors.
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