A Narrow Range

Stocks have been moving sideways in a narrow range over the past three weeks. The January 22 lows have held for now.

From the "for what it's worth" category: TrimTabs estimates that individual investors have pulled $60 billion from stock funds this year. If you define this group as dumb money, then I'd wager you are a bull.

Next we have insider buying and selling data. The daily dollar-based ratio of insider sales to buys has been in the bullish zone all year. Apparently insider selling is down 90% from a year ago. If you consider insiders having the pulse of the economy and of their own shares, you'd again be considered a bull.

Helicopter Ben Bernanke delivers two Capitol Hill speeches this week. Wednesday he delivers a semi-annual testimony before the House Financial Services Committee. Thursday he continues in front of the Senate Banking panel. Based on what I read in the Fed minutes released last week, the Federal Reserve is increasingly alarmed as to the weakness in the economy and the on-going credit crunch. Despite persistent and high readings on inflation, it sounds like the Fed plans to continue its easing policy, esp in light of the bearish commentary contained in the minutes. Therefore, Wall Street will be closely monitoring Bernanke's remarks later this week.

Tomorrow's economic news will be January PPI and February Consumer Confidence, followed Thursday with the initial GDP reading for Q4, 2007. Stay tuned....