Had insiders wanted to, they could have easily opened stocks much lower this morning on the “Italian Referendum Vote”. Like the Brexit, it could easily afford an alibi to force investors and traders to sell and they to acquire new stock and contracts, but since they are holding a large amount of stock and contracts under the 2200 level, their merchandising needs will always come first.
It is sharply advancing prices which will encourage investors to buy after shrugging off the Italian “news”, it is the higher prices on a gap opening, that will bring the buying in so they can unload stock and contracts, at a profit for their accounts.
In a holiday shortened week, insiders were able to sneak prices higher on light volume, until we see heavier volume PA on advancing prices, the market should continue higher in the coming weeks. Daily PA will dictate as we move forward to the end of the year.
Very heavy insider accumulation, signaling higher prices, is shown on the attached chart.
Since the extreme market action of the election night and following two days the markets have settled down with less volatility and greatly reduced volume – It is a conflicting picture and it seems with the events going on, it will most likely remain so for the foreseeable future, although the PA somewhat suggests 2200 and little over, there are definite signs that an imminent pb could happen also, we will be examining closely the pa on the dailys and remain cautious as to any longer term outlook
