Hmm … This Group of Shareholders Says, “Get Me Out!”
This group’s “sell-to-buy ratio is easily more extreme than at any time since 1990”
by Bob Stokes
Updated: February 18, 2021
In today's investment world -- which is teeming with bullish participants -- there's at least one group who is leery of all the feverish buying: company insiders.
This is information very much worth knowing -- because, as Robert Prechter said in his December 2020 Elliott Wave Theorist:
Insiders are selling 50% more intensely than they were at the December 2019 peak and at triple the rate at the February  top in stocks. Like the Commercials in the commodities markets, they tend to be right.
Our recently published February 2021 Elliott Wave Financial Forecast provides an update on the actions of corporate insiders via this chart and commentary:
There is one cohort of shareholders that is not fully embracing the market's rally: corporate insiders. According to The Washington Service, which tracks insider buys and sells, corporate insiders sold 7.8 times as many shares as they purchased in the first two weeks of January. As the chart shows, the sell-to-buy ratio is easily more extreme than at any time since 1990. In the midst of a mild selling wave in August 2000, EWFF stated, "Insiders want out. There must be a reason for it." Whatever the reasons are now, insiders appear to find them even more compelling.
You may be asking: If corporate insiders "tend to be right" about the market, why haven't the main indexes already cratered?
Well, of course, every investor would like to know the exact timing of a big market turn.
As far as we know at Elliott Wave International, there's no such mechanism for providing exact market answers. However, from experience we also know that the closest analytical method for alerting investors to key turns is the Elliott wave model.
As the Wall Street classic book, Elliott Wave Principle: Key to Market Behavior, by Frost & Prechter says:
It is a thrilling experience to pinpoint a turn, and the Wave Principle is the only approach that can occasionally provide the opportunity to do so.
You've learned what's going on with corporate insiders -- now is the time to follow the link below to find out the message of the Wave Principle.
What is Your Investing Timeframe?
Near-term? Intermediate? Big Picture?
Our flagship investor package covers all three! It's worth reviewing now, especially considering this quote from our recently published Elliott Wave Financial Forecast (part of our flagship investor package):
"Call it fair warning."
Find out why we published that "warning" -- plus get near-term, intermediate and big-picture coverage of U.S. stocks, bonds, gold, silver, the U.S. dollar, the U.S. economy and more.
Follow the link below so you can financially prepare for what may be just around the corner.
U.S. Treasury yields aren't the only ones that have been rising. Just like here in the U.S., you can find a lot of "fundamental" explanations for the moves in German bonds. But watch how an Elliott wave pattern warned of these developments as they were just starting.
If you've ever applied technical indicators to a price chart, you know the challenge -- namely, where do you even begin? Watch our Trader's Classroom editor walk you through a "blank chart" of GRPN to show you how to spot simple levels of support and resistance, for starters -- and get an idea as to what's next.
This time-tested indicator provided a warning before the historic 2007 stock market top, and here in 2021, investors should focus on this indicator again. Find out why.