The Traderszone Network

While technical chart readers look for support levels in share prices, fundamental Fools should look for support levels in valuation.

Even before the Dow’s largest three-day point decline in history, one market research firm moved assets to bonds from stocks.

Not out of the woods just yet….
Taking a quick look at the German Dax index, .the barometer for the German stock market has been tumbling along with the global stock markets over the last few weeks.  Yesterday, the index completed a lap for the year.  The low for the year reached 9382.82 back on January 6th. The low yesterday extended to 9338.20.  The lap was completed and in the process the index fell over 24% from the highs.  Ouch! That is one bad trade to swallow for those investors!

One set of investors who weren’t shy about diving into the stock market in the runup to the current selloff was corporate insiders. A total of 1,341 officers and directors of American companies purchased their own stock this month while 2,013 sold, according to data compiled by Washington Service and Bloomberg. “Maybe the executives recognize a correction can happen, but they believe in their business enough in terms of longer term to just go ahead and buy in front of it,” said Charles Smith, chief investment officer at Fort Pitt Capital Group Inc.

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A $225 million deal between Gov. Chris Christie’s administration and ExxonMobil over dozens of polluted sites and nearly 2,000 retail gas stations was approved by a New Jersey judge on Tuesday. Superior …

Bonds and stocks head in opposite directions
The bond and stock markets have sent vastly different signals today. The flight to the safety of bonds has reversed in a big way. The yield has risen 11 basis points today to wipe out the declines from Monday, Friday and most of Thursday.

Say goodbye to the investor complacency of the past three years, and hello to a new stretch of volatility.
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