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BlueTrader performs real-time analysis of insider trading. We screen and contextualize all insider behaviour through our qualitative and quantitative ranking engines to detect stocks with the highest potential. Our Bullish Insider Alert picks have consistently beaten the markets since 2003.
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  • Insider selling versus buying activity reaches four-year high 0 comments
    May 2, 2011 5:05 PM | about stocks: RCRC, HAS, MAR, RLH, VHI, USG, LHCGN, TPX, SONO, TRGP, TZOO, NAVI, TXN, MDT, CPX, SWK, BDX
    In the week ended April 29, BlueTrader, a leading provider of insider trading analytics services, recorded open-market insider activity at 313 companies having a total value of $1.4 billion. This is 134.6% higher than last week, and 19.1% higher when compared to activity a year ago. Insider selling accounted for almost all activity, with purchases accounting for 4.5% of all open-market trades last week.


    Our proprietary insider sell-to-buy ratio, which excludes derivative conversions and certain other types of transactions, ended the week at 21.26, a very bearish reading. The 4-week moving average also moved up smartly to 10.86, placing it, too, firmly in bearish territory.

    Insider Sell-to-Buy Ratio Chart - April 29, 2011

    The last time the 4-week moving average gave off a reading this high was in spring 2007, a couple of months before the S&P 500 topped out. Interestingly, price-based momentum indicators, such as RSI and MACD, are telling a similar story: RSI is making lower highs and upward momentum is fizzling.

    Add that to not-very-compelling valuations, a mixed Q1 earnings season and expectations for higher inflation in the back half of the year (read: margin squeeze), and the adage of "Sell in May, and go away" seems like half-decent advice.
     

    For the 3rd consecutive week, activity was the most concentrated in the Technology sector, where 160 insiders filed trades having an aggregate market value of $443.1 million. Rounding out the top three sectors were Industrials (107 trades for $105 million) and Financials (116 trades for $540.2 million). There was a large spike in activity in the Utilities sector, where the number of trades filed was up 100% on the previous week.
    The largest open-market transaction of the week was in ETFC stock, where Kenneth C Griffin, a director of the firm, sold 27,500,000 shares for a total of $450.4 million. The biggest buy last week was for 290,633 shares of RCRC, worth $8.1 million.

    Largest insider buys last week

    Largest Insider Buys - April 29, 2011






    Largest insider sales last week

    Largest Insider Sales - April 29, 2011




     

    For more stuff on insider trading, visit BlueTrader.com.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Stocks: RCRC, HAS, MAR, RLH, VHI, USG, LHCGN, TPX, SONO, TRGP, TZOO, NAVI, TXN, MDT, CPX, SWK, BDX
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