What Insiders (CEO’s) Know That We Don’t
Anytime you hear the word “Insider” in reference to a company, it always refers to someone who really has their finger on the pulse of that company… someone who knows what’s going on. And no one knows better than the CEO.
Now this may mean nothing, but I’ve personally never seen anything like this… or even read about these numbers being so low… or so high… depending on your point of view. Whatever the case, make sure to check out this article from Bloomberg on Insider Buying and Selling.
It says for the week ending September 10th (last week), insider buying totaled $.5 Million dollars worth of shares. Insider selling, however, totaled $332 Million. So the ratio of how many insiders are selling their own companies stocks to the number of insiders that are buying is 651 to 1.
In other words, Insiders (i.e. CEO’s) have such little confidence in their own company that they are dumping their own shares at breakneck speed.
Certainly doesn’t “predict” anything. But this information is one more warning as to what is really going on.
What do you think about it?
Let me know if the comments section below.
4 Responses to “What Insiders (CEO’s) Know That We Don’t”
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It’s very scary! Is corporate America disintegrating?
How do you reconcile your warnings to the election cycle historical results. The next 15 months have the majority of each 4 year cycles gains, something like 90%+ if I remember correctly.
Hey Brad,
Thanks for the comment. As far as the election cycle results, I’m trading exactly what I see on the charts and have insurance just in case the election cycle doesn’t pan out. If you’re interested even more, check out my video on Put Options as Insurance here and here.
Jeff
That’s almost mind-boggling. It seems like they’re preparing for the worst yet to come. But, doesn’t someone have to be buying these shares up for the markets to remain bullish? I wonder who?