According to Vickers Weekly Insider, Corporate Insiders (the officers and directors of those big publicly traded companies) , according to transactions reported to SEC, were engaged in heavy selling although Dow just reached 14,000 points. A ratio of 9 selling for every 1 buying got noticed by Argus Research of Vickers Weekly Insider.
It's either they believe the market has reached its peak and about to reverse or these insiders know something that make them wary of the 2013 stock rally and therefore exiting early. Usually the private investors of Main Street are the last one to buy and the last one to sell about market trend, buying at the top and selling at the bottom.
In 2011, corporate insiders started selling their corporate stocks few weeks before S&P announced its downgrading of US credit rating. Whatever is the reason for the selling activity of these Corporate Insiders, it's a sure sign of lack of confidence about the current stock market and an indication that the Main Street investors should heed and not ignore.
Copyright 2013 Ketchie V. Schauf
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