Feb 7, 2013|
What's Up On Wall Street - Lex Haris, Managing Editor at CNNMoney
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Stock market is at a level that we have not seen since October of 2007. And a lot of you are probably sitting on your. Portfolio saying gee I wonder if I should be selling my stocks -- the big boys doing what are the insiders doing. Well Lex Harris is the managing editor. At CNN money and east studies with the big boys are -- and he can tell you categorically. What they're doing what their actions are lacks good morning welcome to the show. Very good morning. Can you talk to us about this Vickers weekly insider's report that's produced by Argus. I I think this is a very. Relevant indicator that our listeners should pay attention to. Oh absolutely though and we've been following insider trading for a long time and this is the legal kind of incentive -- so this is. We in our company officials the people who work at the company's buy or sell their own stock they had to close what they're doing. And what we saw in the most recent period was they are selling -- taking advantage of the big runup in stock to. Sell their company stock and are doing at the level that we haven't seen in quite awhile. What do -- wire they sell a unity because it I'm looking at it in there's a lot of contradictory data as I'm sure you're well aware of we're seeing big inflows to stock based mutual funds for the first time in years. And yet the big boys -- just as the individual investors coming back in the big boys are stepping aside. No I think it's exactly right and you know uptight so there's a lot of there's so much noise going on around here there's a lot of questions are individuals getting in. They are for the first time and one time but in really. Small numbers and we've been and we've been getting a lot of anecdotal. Reporting that we been doing that says they are still really scared now the fun part about this. And now this is. Typically what happens is individuals getting it to market into the market at the wrong time and insiders tempted to -- helped write. You know but don't -- -- in the historical data support the theory -- that individual investors come back in about halfway through the rally. Mortgage debt your -- your data support that they're coming in at the top of the. I know I think you're right it's about -- used as there's just the -- of that is when you've got all of the retail investors all the small investors -- it. It's a lot of money and so it -- special stock prices. So that alone keep the -- market going but usually it happens toward the end so and especially I mean. We've had this huge run it's been going on for all the years now you would expect it would be a little bit long in the tooth and start to beat. Toward the end of it. In on CNN money you. Identified. Another sell side indicator. And that's the attitude. That's gone from people being bearish to being bullish. I think he I think we need to explain to our audience why that had a sell side indicator. That means very similar to what we're talking with individual investors basically we in. Which everybody has turned bullish right in the indicating an -- trade. Were traders. When everybody turned bullish there's just nothing left to push. The market higher and so that's why traditionally like to tell people exposed to really had the courage to buy when everybody else's you know that's what Warren Buffett did. By the richest man in the world. Or close -- it and it. And so about it in you know march 2009. Nobody wanted to buy stock in the -- -- to do it you're. You're in there and everybody starts to come along and start the fire but now the opposite. Could be happening. The good news and not be complete -- he. Is. -- do you know. Earnings are doing pretty well right now corporate earnings are the kind of fundamental underpinning prices. And and valuation aren't that much he -- yuppies on aren't that high so it's not. Anderson -- well and there's still nowhere else to -- likes it in its. The I I get this question all the time our stock price is too high and -- -- -- -- you -- where are we going to go. Well -- the promises. There's always some place that I think I mean I I hear you a lot of people you know media exposure to the stock market that support will always be there -- gonna go away completely. But when people panic in people's scared somehow they find a way right they go to an excellent cash they go in and hasn't seen the government bond market. Now do you have any technical data. That would indicate or give us an idea as to how big correction we're looking at this or any resistance level you can refer to. You know it's a -- we don't play a lot of stock in the technical indicators and so there -- a lot of Smart analysts to do it. Because kind of win when you get a panic when you get that. When you get the bad news kind of all bets are off and you can see kind of -- sudden Allah especially you've got kind of hot money going into the market that we're seeing right now pushing the -- Rate rate notes not hot today races downtown -- -- I appreciate your time you guys -- great job over there at CNN money thanks. Lex Harris managing editor at CNN money joining us today on the financial exchange.