Monday, 22 June 2009

Insiders are Selling?! Say it ain't so!

Here a some quotes from a Bloomberg article today talking about how insiders are selling.
“If insiders are selling into the rally, that shows they don’t expect their business to be able to support current stock- price levels”
“They’re looking to take some money off the table because they think the rally will come to an end”
“It’s the most bearish we’ve seen insiders, on a whole, in two years.”
“It does make you wonder if the market rebound is running out of steam”
“If you see broad- based selling among the management team or large holders, that’s generally not a good sign because presumably who knows that business better than they do?”

Now, Bloomberg is telling the whole world that insiders are selling. Not only are they selling, they are selling "at the fastest pace since credit markets started to seize up two years ago." The market is driven by social mood and gives excellent lessons in human psychology. So what are these actions telling you?

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