According to CNBC insiders have been pulling out of stocks
just as small investors are getting in.
Selling by corporate executives has surged recently as the
Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) hit 14,000 and
retail investors flooded into stocks. The amount of insider selling has usually
preceded market selloffs.
"In almost perfect coordination with an equity market
that was rushing toward new all-time highs, insider sentiment has weakened
sharply - falling to its lowest level since late March 2012," wrote David
Coleman of the Vickers Weekly Insider report, one of the longest researchers of
executive buying and selling on Wall Street. "Insiders are waving the
cautionary flag in an increasingly aggressive manner."
There have been more than nine insider sales for every one
buy over the past week among NYSE stocks, according to Vickers. The last time
executives sold their company's stock this aggressively was in early 2012, just
before the S&P 500 (^GSPC) went on to correct by 10 percent to its low for
the year….
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