AllMarket Outlook
logoArgusFebruary 24, 2021

Daily Spotlight: Insiders Cautious, Led by Tech

Market Outlook
Bearish - Short term

Insider sentiment continues to reflect a reasonable degree of caution, suggesting executives, directors and beneficial owners see few near-term catalysts that are likely to drive stock prices quickly higher any time soon. By way of some supporting data, we offer the proprietary eight-week sell/buy ratios from Vickers Stock Research. The ratios are bearish when they are above 2.50. These longer-term sentiment gauges have hung at cautious levels for about two months now. Vickers' NYSE/ASE Eight-Week Sell Buy Ratio is currently 5.26, and has been in a range of 5.00 to 5.72 for the past nine weeks. In those same nine weeks, Vickers' Total Eight-Week Sell Buy Ratio (which adds in insider transaction on the Nasdaq) has been in a range between 5.28 and 6.43, with the current reading of 6.43 representing the top of the range. On an exchange basis, insiders at companies that list on the Nasdaq lead the way, with an Eight-Week Sell/Buy Ratio of 7.39 compared to 5.36 on the NYSE. Based on the recent chart for the Nasdaq Composite, we'd say these insiders got it right when they became cautious a few months ago.

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