Do you think Corporate executives know something about their business that we don’t?
Trim Tabs Investment Research recently reported that monthly insider selling has hit a seven-year high. Corporate executives are better informed than the public, and this is definitely a negative sign.
It’s perfectly normal for insiders to divest themselves via a structured selling program over time. However, when the transactions rise above norms, it could be a cause for concern.
Obviously, they know more about the business than we ever will. Why the sudden increase in selling by those “in-the-know”?
When you combine this with the growing risk of China’s credit bubble along with the age-old adage “Sell in May and Go Away” along with this being the 2nd longest bull market run in history along with the Fed’s reducing of their balance sheet…it’s a confluence of too many things providing upside resistance.
Note that I did not say that this means sell-off. I’m still weary of Martin Armstrong’s call for the DOW to double. But I am looking to sell naked call options to take advantage of what I believe to be some strong near-term resistance.