DESPITE “GREEN SHOOTS” INSIDER SALES SPIKE

[Joanne98]

The latest data on insider selling shows little relief in the relentless unloading of company stock by corporate insiders. In the last two weeks insiders sold over $335MM in stock vs listed insider purchases of just over $12MM. As has been the trend over the course of the last few weeks the list of insider selling has been long and the amounts have been staggering. The buy side, on the other hand, is represented by low rated, low priced stocks whose insiders rarely purchase over $500K.

One might think that with all of these “green shoots” the insiders at major U.S. corporations would begin buying up their own shares voraciously. Especially after a nice little run like we’ve seen lately. After all, with stocks still 35% off their highs and a full blown economic recovery (supposedly) on the horizon it would make nothing but sense than to buy your own shares, right?

CHART

Although there were signs of life in early May the overall trend in buying remains very low. As we’ve noted before it’s not the mountain of selling that most concerns us, but the total lack of buying. Insiders sell for many reasons, but they only buy their own stock when they are confident that the price will rise. As of now, insider buying remains incredibly weak which is more than likely a vote of (no) confidence in future business operations.

CHART

http://pragcap.com/despite-green-shoots-insider-selling-picks-up

[peacetalksforall]

1. Now - go read the article about how people like us who find themselves in

financial trouble from the plummeting U.S.financial structure - are now having trouble landing jobs because of their financial problems.

The laws for this country only apply to the little people.

Insider trading - free of the law just like derivatives and all the other crime. Criminals policing criminals.

[Pale Blue Dot]

2. I am morbidly curious to see the reactions of the cheerleaders

when this all comes crashing down.

And it will.

Will they tell us that nobody could have predicted this? That nobody did predict it? Will they use convoluted and self-deluding models to show that things are not as bad as they seem? Will they blame the realists (the same ones they may deny existed before the crash) for wanting the economy to fail?

[DemReadingDU]

4. Nobody could have predicted this

and additional spin that's it's not so bad...until the people revolt

[wuvuj]

3. Market top?

http://blogs.stockcharts.com/chartwatchers/2009/06/index.html

[lumberjack_jeff]

5. I am not convinced that we are out of the woods.

But then again, my track record suggests that I will be convinced at about the time we enter the next forest.