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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
The percentage of publicly traded companies that have had net buying from corporate officers and directors has been at it’s lowest level in over a decade.
Corporate insiders are selling far more of their shares than buying. As a percentage of companies that have had any net buying from insider transactions, April was only 12.4%, well below our 10 year average of 26.5% and the lowest since 2014!
The data was crunched from insidersentiment.com, a website designed by Nejat Seyhun, a finance professor at the University of Michigan reputable for his skills in option pricing, IPOs, and insider transaction impacts on intra-day trading.
Why are insiders selling now?
It’s not unusual for insiders to take advantage of higher prices to sell some stock they previously earned. April’s low percentage is more difficult for bulls to counter, since the stock market was unusually turbulent in the first week of April, suffering several large down days from the S&P 500.
The technology sector in particular has been on a massive bull run in recent years, and valuations could be getting stretched. See this next chart,
Price-to-earnings ratios have been hitting ginormous valuations recently, comparable to years before the 2000 bubble. It's not surprising to see some investors parking their investments in growth stocks. In 2023, the S&P 500 index outperformed it's historical average return of 10%– reaching 21.9%
The bottom line?
It's not all doom and gloom! I’d recommend you keep a close eye on insider transactions. Continued high levels of insider selling, especially in companies you own, could increase the odds of a negative market reaction in the near future.