Summary
Nasdaq, we have a problem. Stocks started the year with some difficult sledding — and the action after the nonfarm payrolls report blew away expectations (suggesting more near-term Fed stimulus may be a fading dream) was particularly awful. Now, insiders have weighed in. And ugh. The one-week sell/buy ratio from Vickers Stock Research for the NYSE has broken into negative territory, at 6.25 on a scale were anything above 6.00 is bearish. Last week, the ratio was 3.38. That’s not great, but it is only a single week (so far). But the one-week ratio for the Nasdaq also moved into negative territory since last week – and it is here that we really take notice, as the current ratio is an eye-popping 15.57 compared to 4.54 last week. That is an ominous number under any circumstances, but we especially hate to see it just as earnings season is starting and with insiders mostly prohibited from trading for multiple weeks. Indeed, these ratios are not the ‘final word’ we wanted from corporate executives, directors, and beneficial owners. On a sector basis, insider buying was the greatest in the Industrials sector over the last week, with shares valued at $3.4 million bought versus $5.9 million sold for a sell/buy ratio of 1.8. The sell/buy ratio was also largely bullish in the Financial
