New York, NY (PRWEB) March 21, 2012
The S&P 500, has had a tremendous run from the October lows, but Sasha Cekerevac, contributor to popular financial newsletter Profit Confidential, is pointing out two criteria that are alerting him to the market sentiment of the S&P 500, both of which are leading him to believe a market correction is due.
In a recent article he wrote titled, Two Reasons to Worry about the S&P 500, Cekerevac outlines two indicators that are worrying him.
“The first is the level of insider selling,” says Cekerevac. “The last time insider selling peaked was back in May of 2011, which was just prior to the summer market correction in the S&P 500.”
Cekerevac points out that various market sentiment indicators for the S&P 500 don’t always predict a market correction, but, taken together with other indicators, this can raise a big warning flag for investors.
“Insiders certainly feel that the market, viewed by the S&P 500, is fully valued; otherwise, they would be buying some shares,” says Cekerevac.
The second indicator that is worrying Cekerevac is the divergence between the Dow Jones Transportation Index and the S&P 500. The recent market correction in transports is hinting to Cekerevac that there might be more weakness than the S&P 500 is showing us.
“It certainly should be a warning flag for investors who are heavily long the S&P 500 that a market correction is becoming more probable,” says Cekerevac.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.