There hasn’t been a down month in the S&P for 7 months now and only 2 down months since November 2011. We are more than due. f I’d even lay odds that its is January as we are down .05% now. From the technicals I look at the market is way overbought but I don’t trade the market as I don’t seem to be able to do that reliably enough over longer periods to make any money. I do look at technical ratios and am a short term trader but always with the fact or “illusion” that I understand what I own and why I own it. As part of that discipline, I rarely take positions in companies that management won’t buy in a sizeable way with their own money and at or near the prices they are willing to pay. Based on that ratio, the market offers slim pickings. As you can see from the chart below, insiders DO have great market timing when they buy in droves.
