Thursday, August 11, 2011

Insiders Buy Stocks at Highest Rate Since 2009

More executives at Standard & Poor’s 500 Index companies are buying their stock than any time since the depths of the credit crisis after valuations plunged 25 percent below their five-decade average.

Sixty-six insiders at 50 companies bought shares between Aug. 3 and Aug. 9, the most since the five days ended March 9, 2009, when the benchmark index for U.S. equities reached a 12- year low, according to data compiled by Bloomberg.

Insider selling can occur for many reasons, to pay for a new house, an expensive mistress etc., but buying occurs only when an insider expects a stock to go up.

The current market downtrend is the result of problems in Europe. There is enough on an interlink between traders that some caught with weak positions in Europe are forced to sell U.S. positions. Underneath the surface, though, the Fed is aggressively pumping money, which will create a new manipulated boom. The developing manipulated boom is what the insiders are seeing. Money is flowing and will work its way into the stock market.


  1. What will go higher faster, equities or precious metals?

  2. Yeah, about this alleged insider buying spree.

    If you look at daily insider purchases, then during the past week there was a peak of insider buying of $8 million, late last week. It has since collapsed back down to trend, which is around $0.00. The insider buyers market has dried up. In total during the week, $20 million was purchased by insiders. Not a huge sum.

    Then there is the insider selling. Daily selling peaked at $140 million, at the end of July, which was about 20 times that of peak buying. It has also collapsed since then.

    Monthly moving average buying is now at the gigantic and enormous amount of $1.3 million. Monthly moving average selling is at about $40 million, again about 20 times that of buying.

    Bloomberg just went ape-crap over a blip in insider buying, because they want to pump up any good news they can. But when put into perspective, selling still far outweighs buying.