Chart Talk {06.07.17}

Insider are those who are considered to have intimate enough knowledge about their businesses so that their sales are tracked and regulated.  It is considered important by some because presumably savvy business people don't sell shares unless they think they're pretty fully valued.  I think this indicator may have lost it's luster somewhat as we live in an era where options are granted and vested on a regular basis so certain insiders sell as part of estate planning.  

However if this is the sort of thing that keeps you up at night then please note that insider selling is the highest it's been in seven years according to this chart.  Even a cursory viewing of the chart shows that insider buying tends to be a better indicator than selling.  

Back tomorrow.

Link:  Abnormal Returns via Archaea Capital and Wall Street Journal Blog.