- Stock prices are not such bargains anymore. And corporate insiders, including executives and board members, are starting to sell, suggesting that some of the smarter money is heading for the door. âThe people who know are getting out early,â said Art Cashin, the director of floor operations at UBS, who said his âgut feelingâ about the markets prompted him to sell some stocks last week. âThis rallyâs a little long in the tooth.â On Friday, the research firm TrimTabs reported that insider selling had grown to $6.1 billion in the month of August through last Thursday, its highest levels since May 2008 â when the Dow Jones industrial average was floating above 12,000, compared with just over 9,500 at Fridayâs close. The ratio of insider selling to insider buying also soared in August, to about 30 to one, its highest levels since the firm started keeping numbers in 2004. âYou have a classic case of greed stampeding investors into believing that nirvana is at hand,â said Charles Biderman, chief executive of TrimTabs. âWe just donât see how the marketâs going to last.â http://www.nytimes.com/2009/08/31/business/31markets.html?ref=business
http://elitetrader.com/vb/showthread.php?s=&threadid=174450 The "gut feeling" he was talking 'bout is just seeing flat-out weakness in the stock markets in the face of good news. Every noob now who's been following any stock index since last week should've felt that something was amiss.
Isn't it natural to think that stocks are overvalued after a GIGANTIC rally? Of course the bargains in the stock market aren't there anymore, they have all made HUGE GAINS!