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