But there still are the fundamentals (who knew, right?). Earnings have done okay relative to expectations (which were pretty low). But there are companies performing well, and they will continue to do so. I haven't participated in buying things with impaired fundamentals just because they were the ones hit the hardest. Things like financials, home builders, and REITs.
What I want to show you is a chart of insider transactions as of late.
The chart speaks for itself. Insider selling is typically a sign that insiders feel stocks are going to fall. This isn't always the case, but when it is this pronounced, you can usually count on it. one detractor from this thesis would be that insiders were planning to sell a certain amount of shares, but waited until stocks rallied so they wouldn't sell at depressed prices. Although insider selling or buying isn't a great indicator on its own, it can be a valuable tool.
So the questions needs to be asked: If the market is so strong, and the rally will continue, then why is there so much insider selling???