Real Money Transactions: Prescient in 2014 YTD
By Dr. Paul Price of Market Shadows
The Thomson Reuters insider sell/buy ratio showed a modest increase last week but didn’t quite get beyond a neutral reading.
The indicator is worth watching. It correctly called the mid-January top, the early February bottom, and the April bounce which preceded both the S&P 500’s and the DJIA’s new records.
Right now there is no clear directional signal. That view appears to be in harmony with a market that has shown some pretty big short-term swings yet little net movement since year end.
Trend followers have become quite frustrated as the easy gains from 2013 are no longer available. Increased volatility has provided us with opportunities to sell new options and to close out old ones early. We have been locking in some substantial realized gains, mainly from transactions opened 4 – 10 months ago.
As always, it’s best to take what the market gives you, rather than trying to force the action.
Follow all our completed and open equity and option trades by clicking here Market Shadows Virtual Portfolios.
