The overwhelming volume of sell transactions relative to buy transactions by company insiders over the last six months in key leading sectors of the market is the worst Alan Newman, editor of the Crosscurrents newsletter, has ever seen since he began tracking the data.
The strategist looked at insider trading activity amongst the top ten companies that make up the Nasdaq such as Apple , Google and Amazon. Then he analyzed the biggest members of the Retail HOLDRs ETF like Gap , Target and Costco , as well as the top insiders in the semiconductor industry at companies such as Altera , Broadcom and Sandisk .
The largest companies in three of the most important leading sectors of the market have seen their executives classified as insiders sell more than 120 million shares of stock over the last six months. Top executives at these very same companies bought just 38,000 shares over that same time period, making for an eye-popping sell to buy ratio of 3,177 to one!!!
What does this mean for your business and your clients? Is this a bull signal or a bear signal for the remainder of the year?
None of us have a crystal ball, but I think you (and your clients) can draw simple conclusions from this data.
To read the full CNBC article, CLICK HERE.
Make it a productive week, finish up October strong and call when I can help! Implement and thrive!