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Kaltbaum Capital Management President Gary Kaltbaum on a report that corporate insiders are selling their company’s stocks, not buying.
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As the Dow hovers near 141000.
Individual investors pouring billions of dollars and the stocks.
The corporate insiders are doing the opposite.
According to a new born last week insiders were nine times more likely.
To sell company shares them buy new ones should you be following suit joining me now Gary call bomb.
President -- -- capital management -- always great to have you on the show and I.
I understand -- something of an expert on -- Should we follow these CEOs in these executive since sell.
No not necessarily so soft sell but most definitely you should be following them.
They've got a great track record especially when you're seeing numbers 921.
And it's not just one industry it's -- A broad based selling in many in the.
What industries are are really are that CEOs executive selling off.
While I'm seeing and and technology I'm seeing in financials.
And those from me up too although really most important areas and look insider selling and inside a -- it's not a pinpoint indicator.
It's not likely see a lot of selling and all of a sudden.
Things just start the drop in doesn't mean they have to drop.
I just basically put it might file manager.
Knowing it's they got to remember -- a PR.
And -- -- -- -- -- -- and greed and the got here -- -- the deal is these guys know more about these companies that anybody not yet analysts not that professional investors.
They have more information at their fingertips -- around the corner.
And if they are dumping their shares Willy Nilly it seems to me like I'd want to do the same thing.
Again I wouldn't just jump and sell but I'd be watching right look I agree with -- -- they know much more than most people that's why I've been following them.
And writing reports for the last thought you know fifteen years on insider buying and selling.
And this is -- -- pretty big number it tells you there's more fear than greed right now.
With the people running companies and I think it may be says something about the disconnect between what we're seeing an earnings and sales.
And the market which has been going up based on a lot of printing of money.
Guy figure backed year.
Hear what you have to say about the Federal Reserve which I agree with OK so how to like put this in context then is -- a tipping point and metric I should be looking at.
When insider sales are twenty times eight times what how to -- makes sense of this.
Well I can tell -- nine to one is a big big number how why use -- as I use it and and concert with market action itself.
If I start to see a lot of distribution market meaning some big down days on some heavy volume.
And the inability to rally from that in -- stair -- start heading down towards.
That's when I know something's up so this is just what I would call a shot across the bow I wouldn't take it more more than that -- And and here -- -- nobody's gonna -- of a lot of people out there are starting to say the markets over salt that we that you that that that this stock market's gone to high.
Do you agree with them.
Overbought yeah -- wish stretched and extended to the upside.
And I think at any given day we can have a nice little 35% pullback but I don't see nothing much more worse than that at this point in time.
-- -- -- -- -- Are gonna stay above 141000.
-- -- -- I'd rather be specific here at.
I think we're probably going to be in the thirteen 514.
Range for little bit of time here.
I feel like we're losing a little wind at the back over the last few days if you notice anything the last few days so big update big down -- date big -- And that usually -- sign that the the fight is on -- -- -- -- start to show up a little bit but again I don't think we'll get a get a real big correction I think it'll be nominal at this point in time.
As we head into.
The end of the first quarter.
-- -- great to see it come back to him.
Always thank -- thank you.
