While studying the insiders on Wall Street can be incredibly profitable, it can also be a useful tool of protection when market circumstances are heading downward.
When doing my usual insider tracking this week, I came across some curious insider action that could turn out to be a warning sign.
This is why I’m treading lightly at the moment…
For every bull market, there are certain stocks that lead the way, for lack of a better term.
Those stocks almost “push” the market ahead, and when they begin topping out and turning over, the market could be close behind.
One of those market leaders for this bull has been Gilead Sciences, Inc. (GILD).
GILD discovers, develops, and commercializes medicines for the treatment of life threatening diseases in North America, South America, Europe, and the Asia-Pacific.
This biotechnology company in the healthcare sector has risen from $20 per share to heights of $110 per share during this bull market.
But now, the insiders of GILD may be hinting that things are preparing to go the other way…
5 insiders recently sold shares of GILD. To be more specific, more than 327,000 shares were sold by those 5 insiders, which totaled a value of more than $33 million.
And while insiders can sell shares for any number of reasons—they need the money for medical reasons, they want to invest elsewhere, etc.—it probably isn’t a coincidence that 5 insiders decided to sell shares near the same time.
There is a strong possibility that those insiders have recently received some inside information that could be pointing toward a negative impact on GILD.
And if that negative info about GILD spreads to the other leaders of this bull market, we could be looking at the end of this bull.
I will keep a close eye on GILD and let you know which way this stock is pointing.
