Insider Selling Reaches 25-year High as Smart Money Dumps Stocks Before The Coming Crash

Friday, March 21, 2014
By Paul Martin

Ever noticed how a few smart entrepreneurs always manage to sell out in a boom before the bust? In the stock market this is even more apparent and surprise, surprise, insider selling always reaches a climax just before the crash.

The adjusted 25-year high insider index is flashing red right now. It’s a leading indicator, and usually signals imminent danger.

Mark Hulbert of Hulbert Financial Digest concludes: ‘There have been two prior occasions when the adjusted insider ratio got almost as bearish as it is today — early 2007 and early 2011.

Danger signal

‘The first came a half a year before the beginning of the worst bear market since the 1930s. While the market didn’t fall as much following the second of these two instances, the May-October decline in 2011 did satisfy — based on intraday levels of the S&P 500 index — the semi-official definition of a bear market as a 20 per cent drop.’

The Rest…HERE

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