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Global Outlook

Bouncing Anvil

August 14, 2014, Thursday, 21:59 GMT | 16:59 EST | 01:29 IST | 03:59 SGT
Contributed by eResearch

So far, the test of support near SPX 1900 has all the spring of lead. This is not encouraging because it means a continuation of the theme we talked about last week: big players watching and waiting as they slowly exit more positions than they are adding to.

But my indicators tell me that even as we appear due for a fear-driven plunge into deeper support below 1900, it will cause a spike low and reversal as many weak hands fold and cash-flush buyers step in.

And the VIX at DEFCON 3 (or 16+), is telling us it could soon jump to 20, which would probably coincide with another 2% drop to SPX 1880. From there, the 200-day moving average is only another 1% away. Have your buy lists ready for that drop if it comes.

How to Start Insider Trading

We often hear about insiders buying their own company stock... legally, that is. But how do we know what kind of buying is worth paying attention to and, more importantly, worth getting on board with?

Tracey Ryniec has some great insights on this topic in her most recent article. Check out the link below to find out what her "Lawyer Indicator" is and why "cluster" buys can make a difference. Plus she has a third surprising signal when "first-timers" are buying.