Latest on coming market meltdown

Just in on the newswires, selling by corporate insiders has peaked at a level last seen in May 2008. Just another snippet which clues us into what might be coming up for the markets Sept/Oct 2009. For older posts/predictions on this subject scroll down or click here and here.

For orginal article, click here ... or read it below:

Insider Trading and Investor Sentiment Signaling U.S. Stock Market Top

Insider Selling in August Soars to 30.6 Times Insider Buying, Highest Level Since TrimTabs Began Tracking in 2004. NYSE Short Interest Plunges 10.3%, While Margin Debt Spikes 5.9%

SAUSALITO, Calif., Aug. 28 /PRNewswire/ -- TrimTabs Investment Research reported that selling by corporate insiders in August has surged to $6.1 billion, the highest amount since May 2008. The ratio of insider selling to insider buying hit 30.6, the highest level since TrimTabs began tracking the data in 2004.

"The best-informed market participants are sending a clear signal that the party on Wall Street is going to end soon," said Charles Biderman, CEO of TrimTabs.

TrimTabs' data on insider transactions is based on daily filings of Form 4, which corporate officers, directors, and major holders are required to file with the Securities and Exchange Commission.

In a research note, TrimTabs explained that insider activity is not the only sign the rally is about to end. The TrimTabs Demand Index, which tracks 18 fund flow and sentiment indicators, has turned very bearish for the first time since March.

For example, short interest on NYSE stocks plummeted by 10.3% in the second half of July and margin debt on all US listed stocks spiked 5.9% in July, while 51.6% of advisors surveyed by Investors Intelligence are bullish, the highest level since December 2007.

"When corporate insiders are bailing, the shorts are covering and investors are borrowing to buy, it generally pays to be a seller rather than a buyer of stock," said Biderman.

TrimTabs also reports that the actions of U.S. public companies have been bearish. In the past four months, companies have been net sellers of a record $105.2 billion in shares.

"Investors who think the U.S. economy is recovering are going to get a big shock this fall," said Biderman. "Companies and corporate insiders are signaling that the economy is in much worse shape than conventional wisdom believes."

TrimTabs Investment Research is the only independent research service that publishes detailed daily coverage of U.S. stock market liquidity--including mutual fund flows and exchange-traded fund flows--as well as weekly withheld income and employment tax collections. Founded by Charles Biderman, TrimTabs has provided institutional investors with trading strategies since 1990. For more information, please visit

SOURCE TrimTabs Investment Research

UPDATE Sep 11/09: CNN has now picked up on this story ....

Mexican Astrologer Predicts Market Crash for Sep/Oct 2009

Just arrived in my in box (12:06pm SA time on 27th August 2009) an analysis of the current state of the markets and a prediction for September/October2009 by Mexican astrologer Dr Gonzo Pena - who has two PhD's (mathematics & microbiology). His predictions rhyme perfectly with my forecast dated July 19 2009 which you can read here.

Here is Gonzo's piece reproduced verbatim:

The CNN article I am forwarding below only comes to confirm what we have known all along: that the stock markets have decoupled from the real economy. This explains why even though the economy is in such bad shape, with unemployment and production falling every day more and more, the stock markets continue to rally. The Fed lends enormous amounts of money to its cronies, without interest, provided they use the money to purchase precisely the stocks they (the Fed) ask them to. That's another way how they are artificially driving the current rally.

It's interesting that in the Money-CNN page from where I took this article below, they have a voting poll where any one may vote on two questions"should Bernanke be elected for another term, yes or no?. By voting you may check out the results of the poll: I just found out that "Yes"is up with 69 per cent of the votes!. This tells you immediately how very deluded the readers of this CNN article really are.

Later on today, transiting Saturn will partile orb of conjunction to the US radix Neptune at 22Virgo25, an aspect that can always be trusted to bring down very heavy the stock markets. Except that the stock markets have not been falling thus far. The Moon is still early in Sagittarius, from where it will "T"square the transiting Saturn Uranus opposition, but luckily for the markets, these partiles will not happen until hours after closing bell at the NYSE therefore sparing the markets from an hecatombic fall. Transiting Mars in fall debility in Cancer is opposition transiting Pluto in Capricorn while conjoining US Venus under slow motion transiting Mercury "T"squares from the onset of Libra. These are aspects to expect not just a drop but a real crash of the stock markets as the trading week closes. However, my prediction is that the markets will suffer only a ridiculously mild drop totally out of line with what these aspects in orb would lead us to expect. Why?... Well, that's also because the decoupling is so advanced that the markets are ignoring the transits altogether. Whenever this happens, it's only a matter of time before all the accumulated unfulfilled transits suddenly force themselves in. Many are expecting a stocks crash. Some think it will come in September. Others think it will be in October. The New Moon of September 18 features the Luminaries (Sun and Moon) conjoined at 25Virgo59 separating their conjunctions from Saturn at 25Virgo07. That the orb of the Luminaries conjunction Saturn is separative and so tight, spells clearly that the hard crash is just before this September 18 New Moon. Mars in that New Moon of September 18 is at 14Cancer45 separating conjunction to the US Sun at 13Cancer19 while applying only 3 minutes orb of square to the US Saturn at 14Libra48. this Lunation Mars so tightly square US Saturn when the New Moon Luminaries so strongly emphasize transiting Saturn by conjunction, is telling us that the crash is going to be mighty indeed. We better cover our ears: the thud is going to be loud.

CNN article here

Market Meltdown - Phase 2 Imminent?

Disclaimer: Common sense dictates that one should never take investment advice from someone who is not wealthy. "Not wealthy" is a hat that fits me very well. So, you have been warned. Anything you read below is based on planetary configurations only and you act (or not) upon this information at your own risk.

September to November 2008 saw the markets tanking. The DJIA plummeted to a local minimum of 7,552 on November 20th 2008 after sharply coming off highs in excess of 11,500 in the preceding 12 weeks - a downturn of approximately 35%. Indeed, if one computes the extent of the loss from market highs in October 2007, the November 2008 minimum represented a dump of 47%.

Following a local maxmimum of 9,015 on January 6th 2009, DJIA slid even further downhill setting up a new local minimum of 6,594 on March 5th 2009.

It is currently (Jul 19 '09) trading in the 8,000 -9,000 window and has been since approximately the beginning of May.

The astrological circumstances that correlated to the 2008 meltdown peaked in intensity between last week October '08 and last week November '08. (Remember, there was a 2.5 - 3 month down run that culminated in the local minimum on Nov 20th '08).

These same astrological circumstances are set to recur between 1st week in September 2009 and 1st week in October 2009.

It might be concluded, therefore, that any time from now on, through to October 2009, we will see a significant sell off with the equivalent impact and order of magnitude of the turmoil seen in the last trimester of 2008.

My formal non-wealthy-man prediction is that DJIA will have sunk well below 6000 by end October 2009 at latest.

Remember, take it from whence it comes. This is astrology not finance.

Update: The sentences marked orange contained an error which has now been corrected.