Insider Transactions Ratio as a market indicator
According to Barrons, the ratio of insider selling vs buying took a substantially bullish turn this week. The trend had been getting rather bearish, as another popular blog post recently pointed out. Personally, I have more faith in the editors of Barrons/MarketWatch/Smart Money/WSJ than some of the other sources of this data that are out on the web.
And it is not suprising to me that some insiders would be taking profits before the end of the year, especially with the lingering uncertainty surrounding the pending expiration of the Bush tax cuts.
I am personally using this latest market correction to add to my long positions, which include some silver and gold miners as well as tech stocks. I think there are some nice candidates in the energy sector right now as well, which I believe will soon rotate back into favor with investors.