The people who would stand to lose the most if the markets crashed; the corporate executives and insiders, are all jumping ship and selling their stocks.
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The groundswell of insider selling has the attention of Brad Lamensdorf, portfolio manager at Ranger Alternative Management, and he doesn’t like what he sees.
“This is definitely a negative sign,” Lamensdorf wrote in his April newsletter. “They do not see value in their own companies!”
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“Insider selling has jumped again, and this time to levels rarely seen,” analyst David Coleman wrote in Monday’s note.
In the last week, insiders’ sale transactions on the NYSE outnumbered their purchase transactions by more than 11 to 1, according to Vickers, a publication of Argus Research. The 11.47 reading is 3.5 standard deviations above the mean, according to Coleman.