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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (35797)	1/6/2002 3:48:12 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67737

1. INSIDERS PROVIDE WORD OF CAUTION After signaling that September and October share price levels offered great buying opportunities, insider-trading activity in November and December suggests that company executives have grown wary of a pullback in the markets. The ratio of insider sales to purchases in November, ranked by dollar value, was $15 sold for every dollar bought. That is more bearish than the five-year average of 12:1, and comes in sharp contrast to the historically low 3:1 and 11:1 ratios seen in September and October, respectively. Although no data is yet available for December, indications are that insiders grew even more bearish on their own stocks in the final month of the year. TODD'S TAKE: It is worth paying attention to insider trading activity. After all, who knows a company's prospects better than its top executives? (No wonder Enron executives were selling last spring.) Like every investor out there, executives let their portfolios do their talking, and right now they're saying: "Be careful." Although many insiders have been increasingly selling shares in their own companies, one notable exception is Qwest Communications (Q, $15, up 1). Insiders there have been picking up shares since warnings in late October sent the stock plummeting. We agree with the overall insider sentiment, and we're taking this opportunity to remind you that the markets are not out of the woods yet. We've had a great run up since September, but the incredible bull market over the last few months of 2001 can't continue forever -- especially given the underlying uncertainty that still remains in the economy and corporate earnings outlooks. Here at The Bull Market Report, we're in the market for the long haul and we're looking beyond the week-to-week or month-to-month fluctuations. We're confident that the markets are going to move higher in the years ahead, but we believe in being ready for the inevitable dips down, and think you should be too. Remain cautious, do your research, keep a long-term view, and invest accordingly.