MarketWatch : Corporate Insiders are buying stocks in Wall Street : a group that includes corporate officers, directors, and largest shareholders - Three weeks ago, corporate insiders were selling at an abnormally high pace. They were then selling at the fastest pace in the last 40 years

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Sell Stocks when Dow Jones Industrial Average is at 12,500, then three weeks later buy when DJIA at 10,500. Create a Panic and profit. Tricks of Wall Street Smarts.

MarketWatch -
Insiders are buying -
Insiders now consider their stocks to be attractive -
August 9, 2011 -


By Mark Hulbert
Mark Hulbert is the founder of Hulbert Financial Digest in Annandale, Va. He has been tracking the advice of more than 160 financial newsletters since 1980.

Insiders are buying


Some excerpts :

Consider an insider indicator calculated by the Vickers Weekly Insider Report, published by Argus Research. This indicator is a ratio of the number of shares that insiders have sold to the number that they have bought.

For insiders transactions last week, according to the latest issue of the Vickers service, which I received late Monday night, this sell-to-buy ratio stood at 1.68-to-1. That’s bullish, according to Vickers, since the long-term average level for this ratio is between 2 and 2.5 to 1.

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Further confirmation that the insiders are responding in true contrarian fashion to the market’s plunge: Vickers’ sell-to-buy ratio steadily improved last week as the market dropped. For transactions just last Friday, for example, the day after the Dow’s 513-point plunge, the ratio stood at an extraordinarily bullish 0.33-to-1.

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Still, it is comforting that a group of investors who presumably know more about their companies’ prospects that the rest of us consider the low prices of their stocks to represent attractive bargains.

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