Insiders typically have greater insight on the business outlook, and the fact that they haven’t been scooping up their own stocks as the market tumbles suggests they believe that it might not have bottomed just yet
If insiders remain on the sidelines, that could portend more trouble ahead for the stock market, strategists say.
“The thing that stands out right now is the lack of buying (their own stock) even though prices have come down so much,” said Nejat Seyhun, a finance professor at the University of Michigan who studies corporate-insider activity. “That’s kind of a warning.”
Friday/Monday might be interesting...
KITCO: "Traders and investors are now focusing on Friday morning’s U.S. December employment situation report from the Labor Department. The key non-farm payrolls number is expected to come in at up 200,000, following a rise of 263,000 in the November report."
U.S. weekly jobless claims drop to 204,000
Jobs way up...with inflation way up?
McDonald’s worker says manager gave employees $50 an hour to get them to work during staff shortage 'That's like 400 for an 8-hour shift.'
Thanks Roger for the links.
Yes, insiders are not buying - though its more complex than this but this is a fair statement.
I don't actually look at corporate buy/selling - I've seen all these kinds of data fail over years - I guess, due to efficient markets.
But I will say this - if were are talking INVESTORs - not traders...then key question is
- : Is this is bull or bear trend ? and second
- is this close TURN of that trend if have the $ and patience to be a bit early and sit it out.
One way is to look at what PENSIONS and other BIG money who asks those questions is doing - and they are also 'insiders' to some extent...with assumptions they will not be far wrong.
The question is - how to determine that ..I look are price & volume patterns and we can loosely call it ACCUMULATION and DISTRIBUTION.
What I see all of 2022* is very little accumulation, and alot of distribution - or simply
- NO INSTUTIONAL SUPPORT
Until ^this changes - I see very low odds of bear trend turning up.
Edited by EntropyModel, 05 January 2023 - 03:10 PM.