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Insider Action Says It's Not Too Late to Sell

By Jonathan Moreland

About this article:
This (hopefully) once-in-a-generation stock market dislocation has insiders buying their sinking shares much more while also selling much less. That has generated increasingly positive insider buy/sell ratios, which I calculate every week in my InsiderInsights newsletter. Alas, as I explained in my Oct. 7 column, increasingly positive insider buy/sell ratios usually correspond with continuing market weakness. The time to get bullish is when the ratios actually peak and start inflecting lower. With so many stocks already looking way oversold, isn't it too late to start shorting? Judging by historical valuations, perhaps. But that seemed to be the case a couple weeks ago as well, and many stocks have casually given up 10% or more since then. Considering the likelihood of more weeks or months of depressing economic headlines, at least one more round of double-digit declines will unfortunately be on the way for many stocks. An...

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