Insiders’ Stock Market Warning

The officers and directors of the listed stocks have again been very heavily to the sell side. Last week, they invested a total of slightly over $6 Million in stocks of their own companies. At the same time they sold over $212 Million in stocks of their own companies. That insider “buy to sell ratio” of one purchase to thirty five sales was seen in April of 2015 and again in October 2015. Historically as well, that is very high sell to buy level.

Note well that soon following those huge sell to buy ratios, the U.S. stock market suffered harsh declines of approximately 15%. Thus we see this “insider”indicator as suggesting that the S&P 500 and Dow Jones Industrials could soon see a downside correction of 15% or perhaps commence a bear market. We will soon see. This very negative now and without the manipulation that we have seen, the stock markets would never be at their present high levels. I must mention that one sector with solid insider buying over the last eighteen months is the MINING sector.