Insider Sell-Buy Signal: Now Negative

Short-term traders should note that the Thomson Reuters ratio has pulled back out of the bullish territory it occupied just ahead of the market’s February 3^rd bottom and subsequent rally.

The late January Bullish signal was a good one. The mood was very ugly entering February trading as fear of a major sell-off ran wild. In-the-know types became buyers in time to catch some bargains.

Last week’s actions imply insiders feel the near term move may have mildly overshot fair value. I’ve been selectively adding to beaten up names like Coca-Cola (KO), Valmont Industries (VMI) and Wal-Mart (WMT) while not going ‘all in’ just yet. See Putting Some Cash to Work.