NEW YORK (Fortune) -- Can hundreds of stock-selling insiders be wrong?
The stock market has mounted an historic rally since it hit a low in March. The S&P 500 is up 55%, as U.S. job losses have slowed and credit markets have stabilized.
But against that improving backdrop, one indicator has turned distinctly bearish: Corporate officers and directors have been selling shares at a pace last seen just before the onset of the subprime malaise two years ago.
While a wave of insider selling doesn't necessarily foretell a stock market downturn, it suggests that those with the first read on business trends don't believe current stock prices are justified by economic fundamentals.
"It's not a very complicated story," said Charles Biderman, who runs market research firm Trim Tabs. "Insiders know better than you and me. If prices are too high, they sell."
Biderman, who says there were $31 worth of insider stock sales in August for every $1 of insider buys, isn't the only one who has taken note. Ben Silverman, director of research at the InsiderScore.com web site that tracks trading action, said insiders are selling at their most aggressive clip since the summer of 2007.
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US federal deficit climbs higher into record territory, hits $1.38T
The soaring deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The Chinese, now the largest foreign owners of U.S. Treasury securities, have expressed concerns about runaway deficits.
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I rarely wish people bad fortune, but I'll make an exception this time. No one with half a brain cell would be in the Ponzi insider stock market right now.
ReplyDeleteIt will be nice to see the high, mighty, and greedy get wiped out. The banksters are obviously bailing out already.
Dear Blog Master(s)
ReplyDeleteThis posting indicates it is from Fortune magazine..where excatly?
Thx
Oops! Just found it via CNN Money
ReplyDeleteThis can not be true Krammer says buy
ReplyDeleteThis is nothing but a manipulated stock market run up so the insiders can dump their stock. They know what's coming. I pity the slugs that are entering the market because they think good times are here again. Sad.
ReplyDeleteMy TV just told me the recession is over, the job market is beginning to look again. You conspirators are something else. If you would just watch your TV's, you would not have to rely on these conspiracy theories.
ReplyDeleteI'm buying GM stock as soon as possible! Kramer said buy buy buy!
The party will be over soon. If you try and time the crash to come, count on getting bloody.
ReplyDeleteLIke in '29 when Stock Broker gentlemen would pose by their luxury cars with $50 for sale signs.
ReplyDeleteMmmm Fresh venison on the table!
ReplyDeleteDems some good eating right THAR
Its an never ending cycle, the market will crash, another bailout, etc.. money and credit is still given out like circus peanuts, so everyone can get their groove on. ahh, loans are like glorified welfare for everyone in my eyes.America is rockin it 3rd world style!
ReplyDeleteI am buying more Stock and so should you if you don't want to miss a rally with the DJ stock pass 10,000...yes people we will pass the 10,000 mark and go pass the 2007 high. Don't believe me then keep hiding on your cave
ReplyDelete8:53 Thanks AGAIN and AGAIN for your incredible post showing everyone in minute details of the specific article indicating a 10,000 plus DOW. Without posters like yourself this blog would be unbelievable plus a complete conspiracy.
ReplyDelete