Corporate insiders have sold an average of $600 million of stock per day in August, according to TrimTabs Investment Research, which tracks stock market liquidity.
"It signals a lack of confidence," said Winston Chua, an analyst at TrimTabs."When insiders sell, it's a sign they believe valuations are high and it's a good time to be outside the market." But Nicholas Colas, co-founder of DataTrek Research, noted insider selling is not always a helpful indicator at a high level. Rather than reflecting a lack of confidence, he said, the selling may simply be the result of insiders bracing for leaner compensation.
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