Corporate insider velocity

When we looked at "smart money" corporate insider buying and selling last week, one of the ways we looked at it was the velocity of buying and selling pressure over a 4-week period. Eric has now added that to the premium charts, for the S&P 500 as well as major sectors. The Backtest Engine shows that when the growth in buyers is more than 20% above sellers, the S&P 500 had an almost perfect record of rallying over the next three months, with a median gain of more than 7%. When selling velocity was more than 20% higher than buying, its average return was nearly -3% with only a 20% win rate.