Summary

Nasdaq, we’ve got an issue. Stocks began the 12 months with some difficult sledding — and the motion after the nonfarm payrolls report blew away expectations (suggesting more near-term Fed stimulus could also 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 is not great, nevertheless it is barely a single week (to this point). However the one-week ratio for the Nasdaq also moved into negative territory since last week – and it’s here that we actually take notice, as the present ratio is an eye-popping 15.57 in comparison with 4.54 last week. That’s 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 should not the ‘final word’ we wanted from corporate executives, directors, and helpful owners. On a sector basis, insider buying was the best within the Industrials sector during 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 within the Financial