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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (5690)	10/7/1998 2:01:00 PM
From: Tom Trader	Read Replies (1) \| Respond to of 44573

Re Insiders and how I use the indicator I don't buy or sell stocks based on insider transactions--it may be a source of input if I like a stock -- but not even a significant element. When there is systemic buying, they are invariably early in buying because they are looking at it in terms of how their companies are faring as opposed to what the trend in the market may be. But at every significant bottom of any consequence there has been heavy insider buying across the board though they might well be early in terms of a market bottom. In 74 heavy insider buying continued for almost 9 months before the market bottomed. More often it is 3-4 months--so it is not a timing tool but is a very reliable indicator in terms of looking for other signs of a bottom. There was heavy insider buying in 94 and 90 and 87 -- in 90 it took longer to bottom than in 94. The other thing to look at is member/specialist shorts--that reaches very low levels at major bottoms--and from a timing stand-point is more reliable than insider buying. And as of now they are heavily short this market. Re XAU--pleaaaaase keep moving up!!