Chart of the Week

Strong Insider Buying is Good News for Stock Market. Corporate insiders have been buying their companies’ shares much more than selling them while investors were dumping stocks freaked by the coronavirus pandemic (See chart below). In fact the ratio of companies with insider buying vs. insider selling was 1.75 for March. This level is the highest…

Surge in Selling Climaxes Suggests Stock Market Bottom for Near-to-Intermediate Term. Investors Intelligence notes that last week saw a significant number of stocks reversing out of their 52-week lows (see below). Historically, that is yet another indicator suggesting that the stock market major indices have bottomed for the short-to-intermediate terms. Selling climaxes occur when a…

High Dividend Yields Could Start Attracting Big Investors Back Into the Stock Market.  Major stock declines have raised dividend yields to levels investors haven’t seen in years. As as result, we believe, could be a trigger for some major institutions to return to the markets to buy high-yielding stocks that they perceive now have become…

Major Risk Indicators Showing Historic Level of Investor Outright Panic Over Economy and Stock Market.  SentimenTrader has combined a number of risk indicators that measure perceived economic, stock market, monetary liquidity, and perceived credit risk of the global financial banking system. As the chart below shows the coronavirus and its perceived impact has sent the…

Escalating High Yield CDX Index Spread Shows Things are Getting Really Ugly.  In good times the spread between the High Yield CDX Index and Treasuries narrows. That’s because lots of investors are very confident in the state of the economy to buy high yield bonds despite their below-grade ratings. However, as the chart below shows,…