summary
The stock market massacre last week was expected to see a pronounced response from corporate insiders. However, Vickers Stock Research’s weekly insider transaction data has not shown a major response. Possible explanations include the imminent beginning of the revenue season (and the associated trading restrictions currently in place for many insiders) and the fact that last week had a really bad day at the end of the week, with insider trading being made and less time in Vickers’ data for the week. But even on the two worst days (Thursday and Friday), there were no rushes for insiders to sell, but neither did they buy in a hurry. And like many investors, insiders may have visited the slide line because the drops are very sudden and steep. A quick look at Vickers’ major weekly sales/purchase ratios reveal a slight improvement in feelings about the NYSE and a slight deterioration in feelings about Nasdaq. However, at the end of the day, the broader 8-week ratio continues to improve due to the total 8-week sell/buy ratio (all exchanges) of NYSE, NASDAQ and Vickers. The barometer for the last eight weeks currently runs from 2.00 to 6.00 neutral range and is at 3.48 on a scale starting with a bull range below 2.00. Current readings are compared to last week’s 3.74, compared to the latest high of 6.02 in late February. On a sectoral basis, insider purchases exceeded energy sales last week, with $2.4 million in shares being acquired against $19,521. The purchase was also notable at the discretion of the consumer. As $11 million worth of shares were purchased and took over the level of sales activity.
