To: RetiredNow who wrote (216632 ) 2/1/2005 12:29:22 PM From: tejek Respond to One indicator of the quality of the markets is the level of insider buying. Insider buying since last summer has been anemic........more selling than buying. Insiders are not showing a lot of confidence in their companies, and in turn, this economy.Insiders Followed Market's Lead If you guessed that corporate insiders were snapping up stocks in January as the investors tossed them out, you would be dead wrong. According to Thomson Financial, insider buying last month totaled just $35 million, barely more than one-third of December's anemic $95 million and one of the lowest monthly buy volumes on record. But when you add the two sides of the equation up to reach the dollar sell-buy ratio, a measure of investor sentiment, it amounted to a whopping $55 last month. In other words, for every dollar of stock that insiders bought, they sold $55. Thomson says that is the most bearish monthly reading it has witnessed in the past decade. To provide another perspective, a multiple of $20 has historically been considered a bearish extreme.
