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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: marcher who wrote (207448)	6/18/2009 4:23:50 PM
From: Perspective	Respond to of 306849

Thank you! I'd been looking for a reference to Biderman's positioning, his take on the rally. I see he called the lows a convincing capitulation on the part of the individual investor, but he is now concerned enough about the insider selling and lack of stock repurchases that he is 50% short. finance.yahoo.com Individual Investors Not Fueling Recent Rally, Expert Says Jun 18, 2009 11:00am EDT Conventional wisdom is that retail investors – not institutions – have powered the market’s rally off the March lows. Not so, says Charles Biderman, CEO of TimTabs Investment Research. His firm tracks the flow of money in and out of mutual funds. Since the start of May, he says, “U.S. equity funds have taken in a modest $7.1 billion” despite improved performance. Instead, retail investors are plowing money into bond funds. Moreover, Biderman says that individuals did capitulate in the heat of the crisis, having been burned twice in the last ten years. Normally, these would be bullish signs for the stock market. But Biderman is “cautiously bearish” and his model portfolio is 50% short, based on his concerns about the economy and high levels of insider selling. It’s a long list of sectors he is shorting: XLY (SPDR Consumer Discretionary), XLF (SPDR Financials), XLV (SPDR Health Care), XLI (SPDR Industrials), XLB (SPDR Materials) and XLU (SPDR Utilities), With oil near $70 a barrel again, the only thing he’s long right now is XLE (SPDR Energy). `BC