Readers should be aware that, with the making of new Dow highs, the Dow Theory has broadcast a bull buy signal. That’s the good news. The bad news is that insider sales of their own company stock are at a new high also. It is always worth keeping an eye on news like this. Insiders are just that–people who have privileged information and access. If there is a wide held corporate executive opinion that earnings will be weak stock supply will be affected.
It is our practice to ignore and discount information like this –not letting it affect our decisions. But there are those who get happy feet and bolt for the exit. The chart will tell us when to do that.
For the moment we are adding on modestly to our positions which is what technicians do at new highs.