Hulbert: Corporate Insiders are Buying

Corporate insiders are not among the many groups of people who expect this rally to stall, according to Mark Hulbert of Marketwatch.

Insiders have actually substantially upped their purchases of their own stock in recent weeks, indicating that they are bullish about the future prospects of their companies. The ratio of insider sells to buys calculated by Vickers has fallen from a reading of 4.52 three weeks ago to 1.96 in the most recent week. The 1.96 figure is also slightly below the long-term average, meaning that insiders are slightly more bullish than normal. Hulbert notes that this figure can be a bullish indication, despite the fact that sells outnumber buys, because insiders often sell for reasons not related to their level of optimism for their stocks, such as changes in their personal circumstances.