Stock Market Top

Pinnacle DIgest writes: In a recent article from Guy Lerner, he explains why the market is at a top. Despite European leaders announcing a plan to ‘fix’ the Spanish banking system, among other things, the details are vague and the bullishness in the market will be short-lived.

Lerner documents how, thanks to the last three years of global quantitative easing, investors have learnt to front run any speculations of QE. The result: short-lived rallies and less than positive long-term outlooks.

Lerner explains that, from an investor sentiment perspective, the data remains consistent with a stock market top rather than a launching pad to the next bull-market or any kind of sustainable bull rally. He even goes so far to say that the rally we saw after the Euorzone announcement may have been more to do with calendar effects rather than another proclamation to fix an unfixable problem.

Lerner expects volume to really drop off for the next several weeks as we head into the dog days of summer. Insider trading volume has already begun its seasonal decline, with the number of unique buyers and sellers already down 40%.


Click here to read why Guy Lerner believes we are at a stock market top.