S&P 500 Weekly Update

Our SPY position closed Friday at $107.26, which is up 2.9% from our average cost of $104.29. So far, so good.

Note: To enlarge the chart, double-click inside of it.

Since the market bottomed in March, the Dow has gained more than 50%, the S&P 500 up 58%, and NASDAQ up 68%. Wow, which is definitely an understatement. Ok, what has all those insiders (officers and directors) been doing? These are the individuals that should have a better notion of the present circumstances and likely prospects of the companies they run. Well, in the third quarter according to Insider Score, which keeps tab on buying and selling by officers and directors, total purchases by these individuals were $410 million. However, sales by officers and directors were nearly $7.4 billion. Or, to put it another way, for every $1 spent by insiders to acquire stock, they sold more than $18 worth. What do they do that we do not know?