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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (12656)	6/11/2002 9:37:29 AM
From: dvdw©	Read Replies (1) \| Respond to of 19219

Two points on Insiders; 1st they are people first, people make mistakes, like buying million dollar homes when a cycle leads them to believe they can afford it. Many insiders are in this boat, built or bought expensive new homes, cars etc, in the 199 to 2000 time frame, in many cases their stock holdings were the collatoral for those purchases. now, with assets discounted by the market, many of these sales are forced and wouldnt you know it; there are eager bag holders sitting their collecting these shares as they are forced loose. These are Personal decisions that have connections to the company but are NOT the prime movers behind sales. 2nd in low float companies where Insiders control much of the stock, and lockups are off, you can expect investment bankers encouraging these folks to lighten up using all manner of tactics. I learned to monitor these sales and categorize them according to type. In some cases these insiders are duped by the trade with promises of higher prices on their remaining holdings, if they will only lighten up. Naturally these sales flow directly to a cadre of waiting and willing bag holder wannabes. Integrity in Investment banking, now that is a contradiction in terms, have we not already seen the capability and bent of this group? Wondering how many of these IB partners had transparent chinese walls in place where trading departments were net short these same stocks, knowing full well the extensible consequences of the folks they know up close and personal. Insider sales are a key source of supply, when combined with Supply Imbalances, they become just one more metric of manipulation and deceit. Where human behaviors across a whole life are used against the participants to the trades ends.