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Short-Term Trading Signal Flashes Caution Light Again

Short-Term Trading Signal Flashes Caution Light Again

By Paul Price of Market Shadows

Insider Sell-Buy Signal: Moving into Negative Territory

Short-term traders should note that the Thomson Reuters ratio has pulled back out of the bullish territory it occupied just ahead of the market’s February 3rd bottom and subsequent rally.

 Insider Sell-Buy  as of Feb. 21, 2014

The late January Bullish signal was a good one. The mood was very ugly entering February trading as fear of a major sell-off ran wild. In-the-know types became buyers in time to catch some bargains.

DJIA  Feb. 3 - 7, 2014

 DJIA 2-weeks through Feb. 21, 2014

Last week’s actions imply insiders feel the near term move may have mildly overshot fair value. I’ve been selectively adding to beaten up names like Coca-Cola (KO), Valmont Industries (VMI) and Wal-Mart (WMT) while not going ‘all in’ just yet. See Putting Some Cash to Work

KO 1-yr. 

 VMI  1-year

 WMT 1-yr.

 

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