For the week ending November 5th, we find that the "dumb money" is extremely bullish, that insiders are increasing their selling, and that the Rydex market timers are nearing extremes in bullishness. We are closing in on extremes in bullishness which should be a bearish signal.
"The first big week of transaction volume for Q4'10 saw insiders showing a distinct sell bias. A good portion of the selling came courtesy of S&P 500 insiders who, bulls will be happy to know, are not nearly as predictive as their Russell 2000 counterparts. The latter group showed a slight sell bias, but their activity remained muted due to lock-ups ahead of earnings announcements."