9/27/2018 – A positive day with the Dow Jones up 54 points (+0.21%) and the Nasdaq up 51 points (+0.65%)
The stock market finds itself at an incredibly important juncture. Things are about to move. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
Not that we need another red flag, but……
With September not yet over, stock sales by company executives reached $5.7 billion, according to data from TrimTabs Investment Research — the highest September in a decade. August’s $10.3 billion in insider sales also reached a 10-year record.
At the same time, stock buybacks are roaring ahead, pumping up U.S. share prices to new heights. Companies this year have announced $827 billion in spending to purchase their own shares — well above the buybacks that took place during all of 2007, which set the previous annual record.
“Insiders have been committing lots of money for stock buybacks, and they’re not doing buybacks because they think stocks are cheap. They’re doing to it to pump up the stock so they can sell it,” said David Santschi, director of liquidity research at TrimTabs.
It is a nice gig if you can get it.
- Step 1: Use funny money or nearly free debt to buy up unlimited amounts of your company’s stock.
- Step 2: Drive up your stock price to astronomical overvaluation levels.
- Step 3: Give yourself massive stock bonuses and then dump your highly inflated shares to unsuspecting retail investors.
- Step 4: Act a fool when the whole bubble blows up. As it surely will.
There is another name for all of the above. A Ponzi Scheme. Unfortunately, our Government has made it legal and we have to live with it. So, take it for what it is. Yet another massive red flag for an ugly financial bubble we are currently in.
If you would like to find out exactly when the market will crater, based on our timing and mathematical work, please Click Here.
