20-Year High in Insider Selling Precedes Market Top | Adam Taggart

Insider selling is often early.

The highest bars in the chart above (ratio of sellers to buyers) seem to come before the final major price tops in the S&P 500. The ratio of insider selling to buying is now at a 20+ year high:

 

1. Stocks are at an all-time high.
2. Corporate executives are selling far more stock than they are buying.
3. It doesn't take a genius to see that the insiders are cashing out while the getting is good,

     leaving everyone else to be the patsy when the rug pull arrives.

Adam Taggart, November 27, 2024. 

Scott Rubner: 4% year-end rally to 6,200 in the S&P 500, and 7,000 not long after.
Bloomberg, November 25, 2024.

 

Over the past 50 years, the Nasdaq has only experienced one instance (2011) where it was negative both on the Wednesday before and the Friday after Thanksgiving. Out of the 9 negative Wednesdays recorded during this period, the Nasdaq posted a positive return on 8 Fridays after Thanksgiving, with an average Friday gain of 1.39% and a median gain of 0.83%.

Wayne Whaley, November 27, 2024.

 

Jeffrey A. Hirsch, November 28, 2024.

DJIA and S&P Bullish Into Year-End, with Bouts of Profit Taking | Day Hagan

In the Dow Jones Industrial Average (DJIA) and S&P 500, near-term resistance exists within bullish price channels, as negative A/D Line divergences are resolved. The bulls remain in control, but we are watching for signs that the post-election market action signals the beginning of a transition to a choppier 2025. Large-, mid-, and small-cap proxies didn’t come close to filling the upside gap created by the election results, nor did they break below their recent topside breakout ranges and levels. I view this as supportive (bullish) in the near term. It also suggests that the recent low serves as the first level of short-term support.

DJIA and S&P 500 (daily bars). Short-term resistance is still in place. When coupled 

with high levels of “Excessive Optimism”, bouts of profit-taking shouldn’t be surprising. Mind the gaps.

Have equities brought forward the historically bullish returns of the fourth quarter following elections? Are we at risk of such an occurrence? While I still believe there will be instances of profit-taking as we approach year-end, I consider seasonal charts to be secondary; they are not as significant as primary indicators and models.

The Dow Industrials' Four-Year Presidential Cycle suggests a choppy start to 2025, with weakness in the latter part of the 

first presidential year extending into the second year—an outlook that has not been widely discussed on Wall Street.

 

The bull market typically continues into the first year after an election, but the first two years tend to be rocky. Many bear markets begin in the first year and persist into the midterm election year, as seen with the bear market that started in 2021 and continued into 2022. Therefore, looking ahead, prudence suggests adopting an investment strategy that objectively manages risk.

Reference:
Day Hagan (November 27, 2024) - Bullish into Year-End with Bouts of Profit Taking.

 

The typical December Seasonal Pattern starts off dull and pops mid-month.

Support Holds on S&P 500, Bullish Pattern Targets 6,100s | Stephen Suttmeier

First support shifts slightly to the 5870s-5850s area on the S&P 500, which bent but did not decisively break last week. Continuing to hold this support would keep the pattern bullish, with upside potential to the July-September cup and handle. The early 2022 to early 2024 big base breakout targets are into the 6,100s. The cup and handle breakout and retest zone at 5,700-5,650 offers additional support.

The S&P 500 advance-decline (A-D) line reached a new high on Friday (11/22), and the NYSE Composite stocks A-D line hit a new high yesterday (11/25). This neutralizes the mid-October to early November bearish divergences for these market breadth indicators. It also provides bullish confirmation for the new highs on the NYSE and serves as a potential leading indicator for new highs on the S&P 500, increasing the likelihood of following bullish seasonality into year-end.

Stephen Suttmeier, November 26, 2024 [HERE], and [HERE]

 

Trend-wise, while the cap-weighed S&P 500 continues to float above its trendline, the chart above shows that the index is only two standard deviations above trend. At major extremes it can reach three standard deviations.

Jurrien Timmer, November 26, 2024.

Trump's Plan to Ruin China │ Dmitry Skvortsov

Losses in the hundreds of billions of dollars may await China in the coming months – and it’s all because of a document that has just been adopted in the United States. Now, everything depends on the decision of the next White House administration and Donald Trump personally. What is at stake, and how does Trump want to squeeze China out of the American market?

Global MAGA-nomics ahead.

The U.S. China Economic and Security Review Commission (USCC) recommended stripping China of its Permanent Normal Trade Relations (PNTR) status. This move is intended to facilitate the introduction of the trade tariffs promised by Trump on Chinese goods. This is the first time that the USCC, in its annual report to Congress, has openly called for an end to a policy that has been a cornerstone of China’s economic rise over recent decades. In 2022, the Commission had proposed to Congress to temporarily suspend China's PNTR status if the U.S. Trade Representative determined that Beijing had failed to meet its World Trade Organization (WTO) obligations regarding market access.

The PNTR status was approved by Congress for China in 2000 in exchange for Beijing’s agreement to open its markets and liberalize trade practices before joining the WTO. This status obligates Washington to apply the same basic tariffs and privileges to Chinese goods as it does to most of its trade partners, in accordance with U.S. commitments under the WTO. It was also in October 2000 that Congress created the independent USCC, composed of 12 commissioners appointed by Congress. Its role was to monitor U.S.-China relations in trade and security and to provide annual reports to U.S. lawmakers on these issues.

 

  » In China, Tom Cotton wouldn’t even be a village chief. «

According to WTO rules, the U.S. can strip a country of trade advantages under exceptions for national security reasons. The Biden administration used this rationale when imposing sanctions on Russia after the start of the Ukraine conflict in February 2022 (without specifying what exactly constituted a national security threat to the U.S.). In relation to China, American lawmakers want to free their hands in advance, creating the possibility of imposing tariffs or sanctions without any conditions or timelines.

Last week, Representative John Moolenaar, a Republican from Michigan and chairman of the House China Committee, introduced a bill to revoke China’s Permanent Normal Trade Relations status. He cited U.S. Trade Representative Katherine Tai’s assessment that China still adheres to a "state-managed, non-market approach to its economy and trade," which contradicts WTO norms and principles. The bill is likely to gain support from Republicans, including Tom Cotton of Arkansas and Marco Rubio of Florida (Trump’s current nominee for Secretary of State), who were strong advocates for revoking PNTR for China during Trump’s first term. Democrats during Biden’s presidency also pressured China by limiting chip supplies and increasing military tensions between the two countries. However, Biden’s administration’s ultimate goal was to force Beijing to retreat and engage in what is called "decoupling."

 

 » The U.S. has been overriding truth with its power
and trampling justice to serve self-interest. «

In Washington’s interpretation, this would mean preserving a global economy where the U.S. would hinder the development of China's high-tech sectors while allowing it to continue earning revenue from supplying mass consumer goods to America. Chinese oligarchs were subtly hinted that they could return to a "business as usual" scenario if they could deal with Xi Jinping and avoid interfering in high-tech areas.

The Trumpist position is different. They want to strengthen America’s industrial power, even if it requires sacrificing the interests of global financial conglomerates and the very existence of a unified global economy. In this scenario, Chinese products would be forcefully squeezed out of the U.S. and several countries crucial to American economic interests. Whether China will find alternative markets to replace the U.S. is of little concern.

In a report published Tuesday, November 19, the Commission justified its recommendation to Congress to revoke PNTR status by stating that it "allows China to benefit from the same trade terms as U.S. allies despite its practices of intellectual property theft and market manipulation." Among the Commission's findings is also a recommendation for Congress to revoke the de minimis exception for e-commerce goods. This provision, enshrined in U.S. trade law, allows goods worth less than $800 to enter the U.S. duty-free and with less oversight from regulatory agencies. USCC experts refer to statements by U.S. officials that the "de minimis loophole" used by Chinese e-commerce companies like Shein and Temu harms U.S. jobs and could allow Chinese companies to deliver illegal products, including materials related to fentanyl.

China's Four Red Lines: Xi's warning to Biden and Trump.

— November 17, 2024.

 

The recommended revocation of PNTR status would enable a Trump administration to increase tariffs on a wide range of Chinese products. Additionally, without this status, China could face annual reviews of its trade practices, as was the case before PNTR was granted. As USCC commissioner Jacob Helberg stated, "Increasing tariffs on Chinese industrial goods will accelerate the return of supply chains to the U.S., which aligns with President-elect Donald Trump's argument for imposing universal tariffs on imports."

The Chinese Embassy in Washington immediately responded to the recommendations in the USCC report. "Attempts to return U.S.-China trade and economic relations to the Cold War era violate WTO rules and will only harm the mutual interests of both countries and undermine the global economy," said embassy spokesperson Liu Pengyu.

In 2023, China's exports to the U.S. amounted to $448 billion (compared to $505.6 billion in 2017). China has already been surpassed by Mexico ($480 billion) and is only slightly ahead of Canada ($429 billion). U.S. imports from China totaled $147 billion. In this regard, China ranks third, behind NAFTA  (USMCA) countries Canada ($352 billion) and Mexico ($323 billion). The U.S. trade deficit with China in 2023 was an unprecedented $301 billion, and it could increase by 4.4% this year.

If Trump imposes the 60% tariff he has promised (which would be easy to do if the USCC's proposal is adopted), the volume of Chinese goods entering the U.S. will drop sharply. China’s trade surplus with America will also shrink drastically. Even for Chinese companies that don’t leave the U.S. market, profitability will plummet. For those for whom the U.S. market is effectively closed, things will be much harder. Bankruptcy of a number of companies, mass layoffs, and decreased budget revenues are possible.

Quoted from:

Dmitry Skvortsov (November 24, 2024) - Trump's Plan to Ruin China. 

See also:
Francisco José Fernández-Cruz Sequera (October 30, 2024) - Global MAGA-nomics.

MFA of PRC (February 20, 2023) - The US' Economic Hegemony: Looting and Exploitation.

Two Years of +20% Gains for the S&P 500: What's Next? │ Michael Hartnett

Michael Hartnett, Chief Investment Strategist at Bank of America, notes that the S&P 500 is on track for a +20% return in two consecutive years. This has occurred only four times in the past 150 years: 1927/28, 1935/36, 1954/55, and 1995/96. 

 

Historical analysis of returns in the following two years reveals two key insights:

1. The S&P 500 is likely to experience another significant double-digit move in 2025.
2. Falling bond yields may serve as the "secret sauce" that helps the S&P 500 avoid the substantial reversals seen in 1929/30, 1937/38, and 1956/57, potentially catalyzing further significant equity gains, similar to what occurred in 1997/98.

Michael Hartnett (BofA), November 22, 2024. 

 

Decennial Cycle: Average annual change in the DJIA (1881-2023).

 

 Ned Davis Research.

See also:

Tom DeMark (November 15, 2024) - US Stock Market Nearing a Top Similar to 1929.

JFK: Last Independent POTUS & War Against the Deep State │ Gerry Nolan

On November 22, 1963, as John F. Kennedy's motorcade rolled through Dallas, the world witnessed the violent silencing of a leader who dared to challenge the clandestine forces steering global affairs. Kennedy's assassination was not merely the result of the Bay of Pigs debacle or Mafia entanglements; it was the culmination of his audacious attempts to dismantle the shadowy architectures of power, notably the CIA and the Mossad, and to confront Israel's ambitions that threatened global stability.

  » The Deep State's machinations have led us to the brink. «

Kennedy's presidency marked a rare epoch of genuine independence in American leadership. He recognized the peril posed by Israel's clandestine nuclear program at Dimona, understanding that an unchecked nuclear arsenal in the Middle East would ignite a proliferation cascade, destabilizing the region and beyond. In a series of correspondences with Israeli Prime Ministers David Ben-Gurion and Levi Eshkol, Kennedy was unyielding, demanding transparency and regular inspections of the Dimona facility. He warned that the United States' unwavering support for Israel would be jeopardized absent compliance. This confrontation was not merely diplomatic posturing; it was a battle for the soul of international security.

Israel's refusal to sign the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) stands in stark contrast to nations like Iran, which, despite relentless vilification, remains a signatory. The hypocrisy is glaring: Israel, with its opaque nuclear capabilities, operates with impunity, while Iran faces sanctions and threats over its civilian nuclear ambitions. Kennedy foresaw this duplicity and sought to prevent a nuclear-armed Middle East, understanding that such an outcome would edge humanity closer to annihilation.

Today, as the Doomsday Clock ticks perilously close to midnight, the echoes of Kennedy's warnings resound with haunting clarity. The Deep State's machinations have led us to the brink, with proxy wars and covert operations serving as the lifeblood of a military-industrial complex devoid of accountability. The very entities Kennedy sought to dismantle have metastasized, embedding themselves into the fabric of global governance, perpetuating conflicts from Ukraine to Lebanon that inch us ever closer to the abyss.

 

Message to NATO: Don’t Poke the Russian Bear.

— Simeon Boikov, November 22, 2024.

Kennedy's assassination was not just the silencing of a man but the suppression of a vision, a vision of a world where sovereign nations could pursue peace without the overhanging threat of clandestine nuclear proliferation. His death marked the triumph of the very forces he sought to contain, setting a precedent for the unchecked expansion of covert agencies and the normalization of state-sponsored subterfuge.

 

 

America's Desperate Gamble In Ukraine.  — IIR, November 22, 2024. 

 

In commemorating Kennedy's legacy, we must confront the uncomfortable truths he illuminated. The path to midnight is paved with the complicity of those who turn a blind eye to the hypocrisies of nuclear apartheid and the unchecked power of intelligence agencies. To honor his memory is to rekindle the fight against these insidious forces, to demand transparency, and to strive for a world where the specter of nuclear annihilation is not wielded as a tool of geopolitical strategy.

As we stand on the precipice, let us remember Kennedy's courage in facing the hidden hands that steer our world. Let us channel that bravery to challenge the status quo, to expose the hypocrisies, and to pull humanity back from the brink. The clock is ticking, but the legacy of resistance endures.

Quoted from:
Gerry Nolan (November 22, 2024) - JFK: The last independent President and the War Against the Deep State.

Totally Bananas

 

Someone just paid $6.2 million for a banana duct-taped to a wall and plans to eat it.

Nvidia Before & After ChatGPT │ Phil Rosen

Similar to what happened last quarter, the world’s largest stock fell more than 2.5% in overnight trading following the blowout earnings report.

 

■ Earnings per share: $0.81, beating estimates for $0.74, up 103% from a year ago.

■ Revenue: $35.1 billion, beating estimates for $33.2 billion, up 94% from a year ago.
■ Nvidia’s Q4 revenue forecast: $37.5 billion (±2%), beating estimates for $37 billion.

 

The following chart is worth revisiting every earnings report, as it becomes more extreme with each update: 

 Nvidia had risen 192% year-to-date as of Wednesday's close.

Reference:
Phil Rosen (November 21, 2024) - Nvidia shareholders are so spoiled that they felt let down by a $35 billion quarter. 

$NVDA is flashing in our buyer's frenzy indicator again. This is tactical, but suggests upside 

expectations are extraordinarily high/priced in. — RenMac, November 20, 2024.

Thanksgiving to Santa Claus Rally Trade │ Jeff Hirsch

Thanksgiving [Thursday, November 28] kicks off a run of solid bullish seasonal patterns. November-January is the year’s best consecutive 3-month span (2025 STA p. 149). Then there’s the January Effect (2025 STA p. 112 & 114) of small caps outperforming large caps in January, which begins in mid-December.

 » Buy the Tuesday before Thanksgiving and hold until the 2nd trading day of the New Year. «

And of course, the "Santa Claus Rally," (2025 STA p. 118) invented and named by Yale Hirsch in 1972 in the Almanac. Often confused with any Q4 rally, it is defined as the short, sweet rally that covers the last 5 trading days of the year and the first two trading days of the New Year. Yale also coined the phrase: "If Santa Claus should fail to call, bears may come to Broad and Wall."

We have combined these seasonal occurrences into a single trade: Buy the Tuesday before Thanksgiving and hold until the 2nd trading day of the New Year. Since 1950, S&P 500 has been up 79.73% of the time from the Tuesday before Thanksgiving to the 2nd trading day of the year with an average gain of 2.58%. Russell 2000 is up 77.78% of the time since 1979, average gain 3.34%.

Reference:
Jeffrey A. Hirsch (November 20, 2024) - Feast On Small Caps Thanksgiving to Santa Claus Rally Trade.

 

 » From November 5 to December 31, the average return of the S&P 500 has been 2.68%; Nasdaq 100 5.53%, 

and Russell 2000 5.7%. In election years S&P 500 3.38%; Nasdaq 100 0.79%, and Russell 2000 7.94%. «

 Goldman Sachs fund flows guru Scott Rubner, November 6, 2024. See also [HERE].

 

 S&P 500 (daily bars) - Hurst Cycles; Steve Miller, November 21, 2024. See also [HERE].

See also:

Jeffrey A. Hirsch (November 5, 2024) - Bullish Novembers in Election Years Have Weak Seasonal Points.

Jeffrey A. Hirsch (November 6, 2024) - Presidential Election Day to Yearend Historically Bullish.

Jack Gillen (2009) - Year-End Rally, January Effect, and Trend for the Year Ahead.

Germany at the Crossroads: It’s the System, Stupid │ Gerry Nolan

Germany, once Europe’s industrial juggernaut, now stumbles in a state of managed decline. With elections looming, the theatre is set. But let’s be clear: this isn’t about who wins, but whether Germans can reject the system that’s strangling their sovereignty. Because unless they do, these elections are nothing more than a distraction, a masterclass in divide-and-conquer.

 

» Know your enemy. «

  Sun Tzu.

 

Scenario 1: Banning AfD, A Gamble with Fire

Banning AfD wouldn’t be a show of strength but a desperate move to silence over a quarter of the electorate, especially in the former DDR where resentment still burns over decades of economic neglect. Friedrich Merz, obedient globalist and former BlackRock operative, would become Chancellor. The result? More war, deindustrialization, and blind subservience to the US. But silencing AfD won’t kill populism, it’ll fuel it. BSW would emerge as the strongest opposition, carrying the banner for those abandoned by the establishment.

  » Election isn’t about who governs. «

Scenario 2: AfD Grows, But the System Holds

AfD and CDU dominate the elections, but the anti-AfD cordon sanitaire holds. Merz scrambles to cobble together a coalition with Greens and SPD, a circus of contradictions. Meanwhile, AfD becomes the largest opposition party, and with BSW rising in tandem, Germany’s parliament turns into a warzone of populist resistance.

 
But the cracks widen as Germany faces three brutal realities: NATO’s inevitable defeat in Ukraine, an economic crisis fueled by sanctions and energy dependency, and mounting unrest from a population tired of being sacrificed on the altar of vassalage. 

 

Scenario 3: AfD Triumphs – The System Strikes Back

An AfD victory would trigger nothing short of institutional war. Mockingbird media, and globalist puppeteers would unleash chaos: mass protests, endless scandals, “mystery” corruption charges, and lawfare targeting AfD leaders. Color revolution tactics, international condemnation, and Soros-funded street movements would all be in play.

 

» It’s the System, Stupid. «

 

These scenarios expose a single rigged system. This election isn’t about who governs, it’s about maintaining control while gaslighting the public into thinking change is possible. Divide and conquer, with AfD voters demonized as extremists and BSW supporters dismissed as utopian dreamers, all while the establishment engineers the decline.

Here’s the uncomfortable reality: Germany’s democracy is theatre, scripted to ensure one outcome, continued vassalage to Washington. The Nord Stream sabotage was a declaration of US dominance over Europe. Germany’s leaders didn’t even flinch. Their silence was an endorsement of their own country’s humiliation.

If Germans want real change, it’s not about winning elections within a rigged system, it’s about rejecting the system itself. Imagine a post-SMO world where Germany reclaims sovereignty, realigns with Russia and China, and embraces BRICS. Imagine restoring its industrial base, securing cheap energy, and forging a just peace in Europe. This isn’t a fantasy, it’s a choice. But to make it, Germans must first wake up to the fact that their political elite serves Washington, not Berlin.

» Yankee, Go Home « – German cry for sovereignty.

 

The 80’s saw mass protests demanding the removal of US missiles and troops. It’s time for Germans to rediscover that spirit, to say "Yankee, go home" and reclaim their sovereignty. NATO has turned Europe into an American buffer, draining its resources, compromising its security, and hijacking its future.

A sovereign Germany could help lead Europe in a multipolar world, standing with the Global Majority rather than kneeling before the US. The alternative? Continued decline, economic ruin, and an electorate manipulated into fighting itself while the true oppressors profit from the chaos. The real question isn’t about CDU, AfD, or BSW, but whether Germans can see through the charade. The rigged script won’t save them; only rejecting NATO servitude and imagining a future aligned with the Global Majority can.

Quoted from:
Gerry Nolan (November 20, 2024) - Germany at the Crossroads: It’s the System, Stupid. 

See also:

RT (November 20, 2024) - Germany knew in advance about Nord Stream attack.
Gerry Nolan (November 20, 2024) - Nord Stream: Germany’s Quiet Admission of Vassalage.
Cyrus Janssen (May 8, 2024) - How the US Destroyed the German Economy.

US Stock Market Nearing a Top Similar to 1929 │ Tom DeMark

The stock market has been charging along for months. Perhaps not for much longer. Tom DeMark, an award-winning technical analyst who has advised investors such as Paul Tudor Jones, Leon Cooperman, and Steven A. Cohen, believes a market top is imminent.

DeMark highlights that the Dow Jones Industrial Average, from its December 1914 low to its September 1929 high, rallied 624%. From the 2009 low to this week’s high, the Dow has gained 587%. He notes that the current price action mirrors the patterns from the earlier period.  

 

DeMark focuses on trend exhaustion, with the guiding principle that "markets top on good news and bottom on bad." He uses sequences of 9 and 13 daily, weekly, or monthly bars, which need not be consecutive but must exceed the performance from 4 sessions ago in the 9-model or 2 sessions ago in the 13-model. For more information on DeMark's Sequential 9-13 Setup, visit his website [HERE], and [HERE].

 DJIA (1913-1933, and 2008-current; monthly bars).

"On the daily charts of the Dow and S&P, two new all-time highs are needed to trigger a sell signal."

DeMark suggests the Dow’s optimistic upside potential is 47,045, and for the S&P 500, it is 6,118.

"This could lead to a 5% to 10% pullback or a full breakdown."

 

 DJIA (2019-2024; monthly bars).

He also compares the current rally to the one from 2020 to early 2022. The multi-month advance from late 2022 shows a potential upside projection identical to that earlier move.  

 

 DJIA (Q4 2024; daily bars).

For the S&P 500, DeMark reports that the monthly sequential model countdown is at 12 or 13, with an upside potential of 6,118. The S&P 500 closed Thursday, November 14, at 5,949, unable to maintain gains above the 6,000 mark. 

 

On the daily charts, both the Dow and S&P are at sequential countdown 11, meaning two new all-time highs are needed to trigger a sell signal. This could lead to a 5% to 10% pullback or a full breakdown. "The past two weeks' rally has been precarious. A sudden halt in buying—without selling pressure—could undermine the rally and shift the market into a sellers’ phase."

 

"While good news may last until Trump's inauguration, once buying interest fades, any subsequent rallies are likely to be short-lived." 

  Nvidia (February-November 2024; daily bars).

"A new closing high would mark the end of its rally."

DeMark is also cautious about Nvidia, the key microchip maker driving the AI revolution, which reports results next week. The stock is at countdown 12, and a new closing high would mark the end of its rally. DeMark projects Nvidia’s upside potential at $154.50 but warns the downside risk "could be significant."

 

Reference:
Steve Goldstein (November 15, 2024) - Tom DeMark says the stock market is nearing a top as he draws 1929 parallels.

 

 DeMark's Sequential 9-13 Setup.

 

See also:
Lars von Thienen (November 1, 2024) - The 41-Month Kitchin Cycle Topping Patterns in US Stocks.
Richard Smith (October 29, 2024) - Equities Endgame? Spectrum Cycle Analysis of US Indices.
Sergey Tarassov (September 8, 2024) - Kitchin Cycle Suggests DJIA Decline Until End of 2025. 

 

 

 S&P 500 Seasonal Pattern for the Presidential Election Cycle 2024 - 2027.
4 Year Presidential Cycle in line with the Decennial Cycle. 

Trends and turning points are more important than levels. 60-, 80-, or 120-Year Cycle?