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Insider Selling– Is it a time to sell? (No)
By Investment Moats  •  March 14, 2013

Here we are refering to overall market behavior as a whole. In individual stocks, when insider sell individually, it may mean they are rechannelling their funds, but usually when key insiders sell, there may be something wrong.

What if we see a headline showing that in general?

Insider Selling– Is it a time to sell? (No) inside sells

Barry Ritholtz has an article out showing that using these headlines as your market timing tools may not be highly accurate always:

• In late 1982, as the DJIA approached 1050 –a level that had proven a barrier for 17 years– Insider Selling reached its highest (supposedly most bearish) extreme in almost a decade.

• Ironically, by the summer of 1987 corporate insiders had turned into aggressive buyers of their own stock. In fact, Insider Buying reached a record (supposedly
most bullish) level in October 1987… just one week before the 1987 Crash.

• In 1991 Insider Selling spiked as the stock market ...

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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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