TrimTabs: Insider Selling Signals Stocks Topping Out

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1. Date: 2009-07-04 17:37:15
Subject: TrimTabs: Insider Selling Signals Stocks Topping Out
From: Don Tiberone <s...@m...com> Search message by this author

http://blogs.wsj.com/marketbeat/2009/06/29/trimtabs-
insider-selling-signals-stocks-topping-out/

Insider selling is sending bearish signals, according to TrimTabs
Investment Research. In its Weekly Liquidity Review, the Bay Area
research shop writes that it remains "fully bearish (100% short) on
U.S. equities," citing the macroeconomic climate, the gauges of demand
and supply indicators including selling by corporate insiders.
TrimTabs writes:

The best-informed market participants--the top insiders who run
U.S. public companies--are signaling they believe stock prices are
topping out. Based on filings of Form 4 with the Securities and
Exchange Commission, insiders have sold $2.9 billion in June, 9.7
times more than the $300 million they have bought. Insider selling
this month is the highest since November 2008.

Particularly worrisome is the persistent weakness of insider
buying. On the past 60 days, insiders bought only $1.0 billion, the
lowest level since November 2004.

As TrimTabs writes, "If the economy is starting to recover, then why
are insiders buying so few shares?" That seems to be a question
investors may want to consider.