Insider stock sales surges to highest since 1987 stock market crash – Dow can tumble 2000 points in a month
Fred Day
Dec. 6, 2006

Another danger signal flashed across the board. Insider stock sales have surged to the highest levels ever seen since 1987 stock market crash. Insiders and corporate executives have clearer idea of the fundamentals in their company. When they decide sell the stock while the crowd keep buying them, it shows the existence of a major bubble. In every case eventually the bubble has busted. The bust after the boom takes the stock market down on an average 26% in two to three years. The last one was a major correction within a massive secular bull market of 1982-2000.

If history will repeat, the Dow can be in the 7500 area by early 2008. The bear market will probably start in the first or second quarter in 2007. It will depend on when dollar foes into a bull market and breaches the 90 level in terms of dollar index.

Interestingly, Bill Gates of Microsoft and Google's Schmidt led insider stock sales last month.

Insider stock sales surges to highest since 1987 stock market crash – Dow can tumble 2000 points in a month
Fred Day
If history will repeat, the Dow can be in the 7500 area by early 2008. The bear market will probably start in the first or second quarter in 2007.
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Strength in US Service sector growth and weakness in Manufacturing - bullish for dollar and bearish for gold, oil and other metals
Sam Adelton
Iraq problem will have a political solution fast. US budget deficit and trade deficit will shrink like never before. The gold will retest the $400 an ounce. The oil will back down to $40 a barrel.
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Richest 2% of adults in the world own more than half of global household wealth : World Institute for Development Economics Research of the United Nations University
Media Release
The richest 2% of adults in the world own more than half of global household wealth according to a path-breaking study released today by the Helsinki-based World Institute for Development Economics Research of the United Nations University (UNU WIDER).
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Another sign of bullish US Dolllar - Australia's economy grew at its slowest pace in three years as business spending dropped
Fred Day
Australia is suffering the worst drought and a slow growth due to slow business spending. The Aussie dollar will take a beating because of the lower growth and hence lower prospects of rates in Australia. It is bullish for dollar index.
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The bond market acting like late 2000, Fed is in the mood of denial and dollar ready to explode while stocks enter the massive bear market
Peter Oberois
The stubborn Fed will make the dollar rally as US economy though weak start faring far better than the rest of the world.
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US stock market ahead of US Dollar market by two years – extremely bullish for dollar and bearish for gold
Fred Day
If you take the monthly long-term charts in the last twenty years of US Stock market and US Dollar, you can see an interesting time lag. The dollar has done exactly what stock market has done but two years later.
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Early signs of depression and stock market collapse - a surge in mortgage delinquencies in the past few months
Peter Oberois
But this is exactly what happened in 1929. Interest only loans were all on a sudden common norms during 1926 to 1929. Like hedge funds today, the stock market was not regulated.
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