Comments on: DESPITE “GREEN SHOOTS” INSIDER SALES SPIKE

By: Patrick

Patrick — Sun, 07 Jun 2009 14:31:28 +0000

@ Charlie
If insider activity occurs in “advance,” then it must be a leading indicator, not a “lagging” indicator as you stated. Maybe just a slip, but I wanted to clarify for less experienced readers who may be confused by your statement.

By: TPC

TPC — Fri, 05 Jun 2009 20:49:53 +0000

@ Ty, what you’re referring to can be found here:

http://www.secform4.com/i-ratios.htm

@ James,

I got the latest updates from Fin Viz

@ Jay,

Always good to hear from a fellow blogger. Read your work every day. As for insider trading – I can’t say that it impacts my trading much, but I definitely like to follow it. Some companies and managers are particularly interesting (such as Bob Toll – . It’s nice to keep the macro picture in mind nonetheless.

By: Jay (marketfolly)

Jay (marketfolly) — Fri, 05 Jun 2009 19:08:07 +0000

Way back in January we had noticed this trend and also related it to stock buybacks: http://www.marketfolly.com/2009/01/where-are-stock-buybacks.html

Insiders weren’t buying and then the companies themselves weren’t buying. Obviously since then, buybacks have popped up here and there and Walmart’s announcement today is a big one. But, the insider buys are definitely a solid thing to track (we always keep an eye on it) and the fear everyone has is amazing. No one is confident enough to really step in and buy in droves. And, as you’ve highlighted, the sales are pumping out as people want to shore up their personal balance sheets and reduce their risk.

By the way don’t know if you’ve seen this resource but MSN tracks the largest insider buys/sales every 30 days and its good to check in on: http://news.moneycentral.msn.com/process/insider/top10insider.aspx

Jay

By: Charlie

Charlie — Fri, 05 Jun 2009 17:13:35 +0000

In response to the first comment. I have seen that data but I cannot find the link at the moment. The study I read found that insider activity tends to occur in advance (typically about 6 months) of a market move. Insiders tend to see the probelms earlier and get out earlier leaving poor little retail investors naked in a blizzard. Take it as a bearish signal, but not an immediate bearish signal. It is considered to be a lagging indicator.

By: HankB

HankB — Fri, 05 Jun 2009 16:38:47 +0000

Nice work as always TPC

By: James

James — Fri, 05 Jun 2009 15:11:15 +0000

Do you have a link to where you got this information?

By: Tyler

Tyler — Fri, 05 Jun 2009 12:03:35 +0000

TPC,

The insider data is fascinating. Historically, it would be interesting to see the insider buy:sell ratio plotted against market performance and possibly even market volume esp given the low volumes of later.

Thanks..
-ty