Insiders Know How To Play This Rally: SELL!
-- May 14, 2003
Wall Street would love for you to think that the next bull market is right around the corner. But the people who really know what's going on -- company insiders -- know this is nothing more than a bear market rally. Here's proof: They're SELLING their own company's shares hand-over-fist -- not buying!
In fact, roughly seven out of every 10 recent insider transactions are "sell" orders, according to Market Profile Theorems. That means the "smart" money -- people with inside working knowledge -- are getting out fast!
If this were a real bull market, insiders would be buying like crazy, not getting out at record numbers ...
In April, there were 31% more companies filing for insider sales than buys, according to InsiderInsights.com.
Only 664 companies had insiders who bought shares in April. That's the smallest number since InsiderInsights began keeping records in the mid-90s!
Insider buying plunged 40% from March to $70 million, according to Thomson Financial. This is just the third time since 1998 that insider buying has fallen below $100 million.
Ted Turner -- the biggest shareholder in AOL Time Warner -- just dumped an astonishing 60 million shares of AOL stock worth $784 million. That's more than half his holdings in the company. And it shows that America's corporate elite are getting out, too!
The fact is insiders are getting out because they know the recent market action is nothing more than a trap. And they don't want to be one of the suckers who get hammered when the market heads down again, fast and hard.
Insiders' Stock-Selling Spree Ominous