The markets have rebounded nicely in the last two weeks. However, the question is who is buying? More importantly, who is selling? Individual investors have eagerly moved back in from the sidelines, mostly putting their cash in the broad markets (small and micro cap stocks).

On the flip side, big sellers are insiders. Microsoft CEO Steve Ballmer, AOL Director Ted Turner, and Dell Computer Chairman Michael Dell were selling their companies' shares, according to Vickers Weekly Insider Report.

Vickers says that in the last eight weeks, executives, directors and big individual investors made 3.1 sales for each purchase, the most selling activity since July 2002. That wave of selling last year preceded a market sell-off.

It could be an indication of where they think the market is headed in the coming months, or it could simply be they are selling off shares in order to buy other commodities (real estate, for instance) or diversify their portfolios. Then there is the fact that insiders are not always right when they sell or buy. Take Martha Stewart for example (please). If she had held on to Imclone rather then take an insider's advice to sell, she wouldn't be in the fix she's in currently.

The market faces a challenge staying past 9000. It's stalling at that point now. It all depends on Federal Reserve action or dollar value. In fact, for the next several years, most financial and political action will be carried out on behalf of the dollar.

The goal will be to keep the dollar from falling too fast, too far. Most of this action will be presented to the public for different reasons. It would cause a panic in the markets if Main Street knew the extent of the dollar's weakness. The Fed still has a number of tricks up its sleeve to keep things from coming unglued, but don't take the Fed's fake. Read the my June newsletter for details. With the media's help, Fed action will cover-up dollar weakness and tend to push investors into losing investments.