Skip to comments.The Last Two Times Corporate Insiders Got This Bearish, Stocks Went On To Dive
Posted on 12/24/2012 6:57:55 AM PST by blam
The Last Two Times Corporate Insiders Got This Bearish, Stocks Went On To Dive
Cullen Roche, Pragmatic Capitalism
December 24, 2012, 4:21 AM
The last time Mark Hulbert updated his insider trading data the market was in the process of bottoming. He said insiders were very bullish. How quickly sentiment changes in a month! His latest update shows a huge reversal in insider sentiment:
For the week that ended last Friday, this sell-to-buy ratio for NYSE-listed shares listed stood at 6.67-to-1. That means insiders, on average, were selling nearly seven shares of their companies stock for every one that they were buying. One month ago, in contrast, the comparable ratio stood at 1.54-to-1.
To put the current sell-to-buy ratio into a broader perspective, consider where it stood on those occasions this year when the stock market hit a high or low of more than just minor significance.
Sell-to-buy ratio for NYSE-listed stocks
Early May high, just before May-June correction
Early October high, just before October-November correction
Average over last 20 years
Early June low
As you can see from the accompanying table, the latest reading is both far above the long-term average and right in line with levels seen at the markets intermediate tops earlier this year.
Read more here
(Excerpt) Read more at businessinsider.com ...
OK. Good ahead and sell.
So, at what level are you going to return to the market(s)?
Believe me, nobody’s that smart. That includes me and YOU.
If this is true, the market numbers are all fake because a lot of smaller players are NOT buying securities. The whole thing is made up of fake numbers.
If this is true, the market numbers are all fake because a lot of smaller players are NOT buying securities. The whole thing is made up of fake numbers. Instead people are buying guns.
If this is true, the market numbers are all fake because a lot of smaller players are NOT buying securities. The whole thing is made up of fake numbers. Instead, people are buying guns.
It’s probably a lot of this, anticipating tax increases. Also, if you think taxes are going way up, you might expect the price of the stock to go way down. In either case, it’s not necessarily a commentary on the companies involved.
———at what level are you going to return to the market-——
It would seem to me that the seller’s are indicating their desire to take gains at the lesser rate perceiving the rates will certainly rise. Knowing the state of their own company, they may see many better places to invest the gains intact money. The sell order might be associated with an immediate buy order in something already researched.
You don’t need to be “smart” to predict medical device companies are going to get slaughtered when they start paying the Obmacare Tax.
Because of a 3.8% tax? Won't they simply reflect the cost increase in their price - passing the cost along to the consumer? This particular example doesn't make sense to me. Maybe I'm not smart enough to connect the dots.
No. They will eat the cost. Comes right out of their profits.
So what is happening with insider trading here in February?