They may not be the smartest people on Wall Street, but they certainly have the most access to vital information…
And they’re trying to tell us something with their actions right now.
Their warning is growing stronger every day—should you be worried?
If you’re a regular reader of this column you know that the insiders on Wall Street—the company officers, directors, and 10% owners—are the first to see the privileged information.
And you may also know that those insiders unwittingly leave us hints all the time.
Right now, that hint is an ever-growing siren that’s cautioning those ready to listen.
Now, one of the tools I use to gather information from the insiders is the insider transaction ratio, which measures the sales to buys of the insiders in the stock market.
There is always more insider selling taking place, but the comparison can give us rare insight into the mood of the market.
For this ratio tool I use, readings over 20 to 1 are bearish, while those under 12 to 1 are bullish.
And right now the reading is showing a whopping 29!
The flocking of insiders to the bears team is, at the very least, concerning if not downright alarming.
And these numbers are backed up with more facts from this past week of insider transactions.
When I begin assessing insider actions at the beginning of the week, I try to focus on the companies getting play in the millions of dollars. I’ve found this to be a good telltale signal of how insiders are feeling.
And while there we countless sales of stock in a company by insiders exceeding the $1 million mark (well over 20), there were only 3 companies experiencing insider purchasing of at least $1 million.
The numbers don’t lie, and the insiders continue to grow more bearish.
