Does insider behavior matters? You bet it does. It is statistically proven that insider actions can provide the most accurate reflection of the prospects for the market in general, going forward.
From Foxbusiness: Corporate America is not as bullish about its own stock as it was three months ago.
Executives are buying fewer shares in their own companies, and by some measures are selling stock at rates not seen since the Dow traded around 14,000.
Just three months ago [company] executives scooped up shares of their own companies as the major stock indexes sank to the lowest levels in a decade.
“What we’re seeing now is a dramatic reversal in that sentiment,” says [David Coleman, editor of Vickers Weekly Insider Report], whose firm tracks buying and selling of all publicly-traded companes. “The trend has reversed from what had been historically high levels of buying relative to selling.”
TrimTabs Investment Research reports that insiders at public companies have sold $2.6 billion worth of shares so far in June. That’s 22 times more than the $120 million in stock they have bought…TrimTabs’s 60-day total of insider buying has fallen to the lowest level since December 2004.