Last week there was a report that corporate insiders were selling at a faster rate that at any time since October, 2007 -- right near the top of the market.
Well, the market's only raged higher since then and insider selling is only getting more intense.
The Pragmatic Capitalist here has aggregated recent insider transactions. As you can see from his data collected (unfortunately the tables won't fit here, do click over), insider sales dwarf insider buys both in frequency and in volume. Insiders are selling their stocks in multi-million dollar blocks, while the few buys are much smaller.
If nothing else, it means that a lot of executives probably saw the abyss (a violent drop from the ranks of the wealthy to poor) and want to de-risk to ensure that no matter what happens to their stock, they've taken some skin out of the game.
link
Support This Blog-Visit the Advertisers above!
Jeff Bezos at Amazon unloaded $250 million shares in the last 5 days. Did he just need to lock in some profits to buy a new yacht, or does he smell something fishy in these markets. I vote the latter.
ReplyDeleteMac
the fact is these execs have regular disposition dates (at least the big boys like gates and bezos)...but it is telling information.
ReplyDeleteThe insiders are professional traders. They achieved their prominence in their profession by understanding market trends.
ReplyDeleteIf they are selling currently, then they believe this brief rally is near the peak of its climax.
Get out now. Stand back and observe what happens now through the summer months.
There is a storm coming the likes of which few have seen in their lifetime.
How come you guys aren't attributing this post?
ReplyDeletehttp://www.businessinsider.com/insider-selling-at-a-furious-pace-2009-5