The good news is that corporate insiders aren’t behaving so bearishly as to generate a “run for the hills” sell signal for the market as a whole. According to a report from marketwatch, the bad news, however, is that their behavior isn’t generating screaming buy signals either.
Corporate insiders are individuals who presumably have more insight than the rest of us into the prospects of their companies’ shares — officers, directors and the largest shareholders. They are required to more or less immediately report to the government whenever they buy or sell such shares, and many on Wall Street pay close attention to trends in what the insiders report.
Vickers Weekly Insider Report, published by Argus Research, regularly analyzes the data. It calculates a ratio of the number of shares that insiders collectively have sold in the open market to the number that they have purchased. The average level of this sell-to-buy ratio, Vickers has found from analyzing four decades’ worth of insider data, is between 2-to-1 and 2.5-to-1….
Read more at http://www.marketwatch.com/story/good-news-and-bad-from-insiders-2011-11-08?mod=MWCommentaryandBlogs&mod=marketwatch
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