Welcome back all.

I mentioned the insider selling early last week,

well here's an article from Bloomberg on that topic which is very interesting indeed.

The rats are most definitely jumping ship now, after the most rapid appreciation in stock valuations in years.

It would be very interesting to find out if they are selling stock granted as part of year end compensation for 2018.

It's a nice scam to run in a public company;

Institute a big stock buyback program to massage the EPS figures,-  increasing shareholder value don't you know!

Borrow heavily on the back of company to fund said program.

Next step, grant yourself a nice bonus using the stock you bought back.

And finally;

sell the stock back into the market again and reap the rewards.

In the end, the company is loaded up with debt and the shareholders are left to cover the losses.

This is outright fraud in my book!

And this is bubble behavior at its best! Enron? Countrywide? Bear sterns?

Down to business.

S&P 500.

1 hr

4 Hours

Daily


The high of the session today hit 2852.42.
This brought the price right up to the upper trend channel line
to complete a possible wave 'v' of (v).
The nice sharp selloff for the rest of the session hints at a larger turn down in play now.

If wave 'B' is complete at todays highs,
then we should see a reasonable decline for the rest of the week in wave (i) as shown.

A break of that previous wave 'iv' low at 2722 after a five wave decline,
will be a good sign that the top is in for wave 'B'.

And at that point we can expect a nice 700 point drop in wave 'C' to start with.

As for the alternate counts shown circled in red,
I simply cannot discard them!
And if the market does experience a significant selloff from here,
the probability of these alternate counts will only grow.

So I'm afraid the outright bearish view
will be sticking around for the long haul it seems!

Tomorrow;
Watch for this initial selloff to continue in wave (i).
2852 must hold.