Wednesday, November 27, 2024

20-Year High in Insider Selling Precedes Market Top | Adam Taggart

Insider selling is often early.

The highest bars in the chart above (ratio of sellers to buyers) seem to come before the final major price tops in the S&P 500. The ratio of insider selling to buying is now at a 20+ year high:
 
1. Stocks are at an all-time high.
2. Corporate executives are selling far more stock than they are buying.
3. It doesn't take a genius to see that the insiders are cashing out while the getting is good,
     leaving everyone else to be the patsy when the rug pull arrives.


 
Over the past 50 years, the Nasdaq has only experienced one instance (2011) where it was negative both on the Wednesday before and the Friday after Thanksgiving. Out of the 9 negative Wednesdays recorded during this period, the Nasdaq posted a positive return on 8 Fridays after Thanksgiving, with an average Friday gain of 1.39% and a median gain of 0.83%.