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Dec 11, 2006 - Issue #036

Insiders Selling Out in Droves!

DJ-30: 12307.49 +113.36 +0.93%. In the Real World: 51.21 +0.47 +0.93%.

UP: 20 (+9), Down: 10 (-9).

Trends (weekly): This is the subjective part.

Rising 13 (+1):

+*C, DIS, HON, HPQ, +*IBM, JNJ, JPM, KO, +*MCD, MO, T, VZ, XOM.

Consolidating 14 (-1):

-*AA, AIG, AXP, BA, DD, GE, +*GM, -*HD, INTC, MRK, MSFT, PG, UTX, WMT.

Declining 3 (n/c):

CAT, -*MMM, -*PFE.

* denotes change of category.

+/- denotes change of direction.

Some of the news items mentioned this past week on CNBC-TV:

Sub-prime mortage market coming apart at the seams!

Retail sales disappointing!

Government reports poverty showing up in suburbs!

Insiders selling out in droves!

Muni bond market red hot!

Which of the above do you think I consider the most important???

From their vantage point, who knows more about their companies outlook? They must have their reasons!

C turned on a dime, going from declining to rising on volume explosion, company silent. Cramer went ballistic calling for SEC to do its job! Don't chase the stock.

Serious: MMM formed a significant downward resistance trendline. Be warned.

Apparently, HD is caught up in the back-dating of options net. It hasn't hurt the stock, so far.

As for muni bonds (see NMUNI), the market has been red hot. When the CNBC-TV "experts" tell you it's time to buy, in my opinion, use that as your signal to sell. They're bonds, for crying out loud, selling for huge premiums over par. Are they insane?

S&P 500: Check out BSX for accumulation. Chart looks interesting.