Insiders Selling into Rally

Is this a good or a bad thing? I know one thing it is never a good sign when insiders start selling. Insider selling is often a barometer of confidence.

Lack of confidence in their own company by insiders is often followed by negative reporting down the road.

Is it panic? Or, is the outlooks so dismal that insiders want to get out why the gettin is good.

If you own a stock, and the insiders are selling, it is usually a red flag.

Executives and insiders at U.S. companies are taking advantage of the steepest stock market gains since 1938 to unload shares at the fastest pace since the start of the bear market.

While the Standard & Poor’s 500 Index climbed 28 percent from a 12-year low on March 9, CEOs, directors and senior officers at U.S. companies sold $353 million of equities this month, or 8.3 times more than they bought, data compiled by Washington Service, a Bethesda, Maryland-based research firm, show. That’s a warning sign because insiders usually have more information about their companies’ prospects than anyone else, according to William Stone at PNC Financial Services Group Inc.

Do insiders know something you don't know?

Insider Selling Jumps to Highest Level Since 2007

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Investors pull $33 Billion out of Market

Trim Tabs estimates that investors pulled $33 billion out of the market in February. The Investment Company Institute estimates that investors sold $7.1 billion in stocks during the four week period ending February 16. Amazingly, ICI estimated that investors bought $9 billion more than they bought in January. Nothing like buy high, sell low.

Vanguard reported on Monday that call volume was up considerably and their was movement out of stocks and into money funds. Ditto T. Rowe Price.

It appears that both corporate and institutions are selling.

Selling climax coming soon, most likely.

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Bob DeMarco is a citizen journalist, blogger, and Caregiver. In addition to being an experienced writer he taught at the University of Georgia , was an Asociate Director and Limited Partner at Bear Stearns, was CEO of IP Group, and is a mentor. Bob currently resides in Delray Beach, FL where he cares for his mother, Dorothy, who suffers from Alzheimer's disease. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. His content has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, BlogCritics, and a growing list of newspaper websites (15). Bob is actively seeking syndication and writing assignments.

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