Corporate Insiders Sell
Does the current stock rally have long legs? Not if you give meaning to corporate insiders.
Insiders at America’s publicly traded companies are selling stock at the fastest pace since October 2007 - the month the stock market peaked.
Why should we pay attention to what the insiders are doing? It’s because they know way more about their companies than we do. If insiders are selling, then why the heck should anyone buy? The reason is that we have to dig to find the truth, and there is nothing regulatory that compels companies to tell the truth.
The only thing we outsiders have to go buy is common sense along with being alert to legally reported insider trading, which is required by the regulatory authorities.
1 comment
That is so true. It’s seldom for insiders losing money during crisis. They usually laughed all the way to the bank already. For serious consideration, price action confirmed by insider trading could be a decent trading strategy.
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