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FBN’s Liz MacDonald on insiders selling over nine NYSE shares for every one share bought, and why this bearish signal should be noted by investors.
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All right well we're gonna bearish warning for you that -- help protect your portfolio hopefully a closely -- indicator on Wall Street has turned sharply negative.
Does with McDonald -- now.
-- -- find out is important.
Indicator to watch yet.
That's right S interests and -- and tracking this insider selling.
-- -- from -- Vickers weekly insider report put up -- Argus research we did tracking it since last September.
And what we're seeing now and we've already been group out there reporting this we're seeing it turned -- that insiders have turned aggressively barracks the ratio.
Obviously sales to purchases of by insiders.
Has -- tips now up to nine to one yet so that's on the nice seats so what we're seeing is the -- -- these levels since.
Around at the time that -- was about to downgrade the United States this is dating back to June and July 22011.
This we have seen damaging his negative air signals.
-- while the five that this -- the eight week moving average on this if you wanna call it that.
As 521 and we haven't seen that since early 2012 but you know when people report the story wanna know what companies.
Yeah insiders are dumping take a look here.
If you're -- look at Google global payments Procter & Gamble are on the list.
These stocks the insiders are selling three or more insiders are selling.
And they're not buying during this expect intense of selling and it's at least two insiders have cut their holdings I have so you know heights -- Tracy ready to jump in here because you trees you've got to ask this -- freer range so that's selling plants -- time employee stock options and restricted stock.
Good it's due to the -- I guess maybe it's because of taxes that's.
Gonna say but yeah 'cause of tax -- at the end of the year ahead on trying to get it in under the gun went kept change -- it's an important question we saw it takes start to tick up in December right and accessed are seeing it tick up even earlier in the fall.
But the magnitude of what for what -- the reason.
Then what's being said is two things -- magnitude of the selling cannot be discounted right now.
And also victims are saying listen to this that insiders are showing remarkable ability to identify the peaks and then down dressed before they happen in the market so.
Pay attention to this very important signal.
Incur interest in separate it -- -- this is a developing story going to be staying on topic because as we've been watching -- last September very good.
Thank you you're.
