Trader’s Narrative

Every week, the Chairman distills the contents of Barron’s into concise and delicious pixelated morsels. This week was no exception. Here I only wanted to add two tidbits that escaped his eagle eye.

The first was about insider activity. Usually insiders are net sellers by nature but by watching the ratio of their sells to buys, we can gain insight into the market. Recently, the ratio of insider selling to buying fell to 4 which is a two and a half year low.

Second, the forward PE ratio of the S&P 500 is now less than 14. The last time the multiple was this low was 1995.