Potential Market Negatives Part 3: Insider Selling

For the next part of my highly overdue ‘Potential Market Negatives’ series, I wanted to highlight recently elevated amounts of insider selling.  Insider buying peaked at March while the market was at or very close to interim lows, however, since then buying has shifted to net selling (see chart).  This could of course be due to executives taking profits on what they believe is overdue compensation, but the shift is worrisome as it may imply insiders believe short term gains could be maxed out.

To add more color on this topic I came across this interesting article on CNN.com, which you may also find a good read.