Posted by
john on Friday, November 14, 2008 6:00:30 PM
The excellent Fast Money had a feature today noting that this week has seen quite a spate of insider buying among top corporate executives. By itself? Interesting, but not intriguing, I once heard a judge remark.
What makes this intriguing, and not merely interesting, is that this comes at the same time as we also witnessed (a) a key reversal in the major averages (Thursday), and (b) epoch-defining hedge fund redemptions. Thus, rather than simply conclude that certain execs got new credit lines, or were instructed by lawyers to make votes of confidence with their checkbooks, this confluence of events suggests a significant tradeable "bottom".
I am not sanguine on the medium to long-term prospects for either the stock market or the U.S. economy. Certainly, I'm not encouraged about the short-term prospects for the general economy, either. However, please note that I said "tradeable". Even the worst bear markets have rallies. But be very, very careful out there.