Insider Buying? Headlines vs S&P 500 Index

July 6, 2011 11:30am by Barry Ritholtz

Last week, I mentioned the Insider Buying Ratio was at extreme levels — but I had to admit I had no idea what that meant for future market performance.

Following the Marketwatch piece, Jim Stack of InvesTech Research Market Analyst
put out a terrific chart that tracked major headlines about Insider Buying versus the performance of the SPX.

The correlation? Its mostly a meaningless data point, as the chart below shows:

Insider Headlines / S&P 500 Index

click for ginormous chart

Source:
InvesTech Research Market Analyst
Technical and Monetary Investment Analysis, Vol11 Iss07
July 1, 2011

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