A Surprising Clue from Financial Sector Insiders
Key points:
- Not every "squiggle" from every indicator "means something," however, sometimes useful information can be gleaned from unexpected places and in unanticipated ways
- Corporate insider buying in the financial sector is not at a significantly high level, but it picked up noticeably over the past several weeks
- Historically, this has had favorable implications for the broader stock market
An interesting anomaly in financial sector insider buying
Two things to remember: 1) Corporate insiders pay close attention to fundamentals, i.e., the anticipated changes in futures sales and earnings, and 2) They only spend their own money to buy shares of their own company when they feel quite confident about #1.
There are few more favorable signs for a given industry than a large amount of buying by executives who know it best. For example, the chart below highlights dates when our Corporate Insider Buys - XLF indicator crossed above 60 for the first time in six months. The State Street Financial Select Sector SPDR ETF (XLF) trac

