The issue of insider selling has been covered a lot in the media the past few months. The trend first came to light in a significant way as far back as May this year — but failed to dampen the equity rally over the summer.
Now, however, it’s not just a case of insider selling. Charles Biderman, CEO of investment-flow research firm Trimtabs, told Bloomberg viewers on August 28 his firm’s data showed that insider buying had come to a virtual standstill in August:
According to Biderman, the insider buying-to-selling ratio was at a level of 30 times in August — a number Trimtabs has never seen despite tracking levels in this space since 2004.
And it wasn’t just that insiders weren’t buying, Biderman said the above applied to corporate buying in all its shapes and forms — from buybacks to acquisitions. As he said:
Companies are saying they don’t want to buy stock at any price, they’re sellers.
I have no idea where the money is coming to keep prices from plunging.
Related links:
The problem with non-farm payroll numbers - FT Alphaville
Insiders selling this rally – FT Alphaville