Insider Trading and Investor Sentiment Signaling U.S. Stock Market Top

Fri Aug 28, 2009 6:30am EDT

* Reuters is not responsible for the content in this press release.

Insider Selling in August Soars to 30.6 Times Insider Buying, Highest Level
Since TrimTabs Began Tracking in 2004.  NYSE Short Interest Plunges 10.3%,
While Margin Debt Spikes 5.9%

SAUSALITO, Calif., Aug. 28 /PRNewswire/ -- TrimTabs Investment Research
reported that selling by corporate insiders in August has surged to $6.1
billion, the highest amount since May 2008. The ratio of insider selling to
insider buying hit 30.6, the highest level since TrimTabs began tracking the
data in 2004.

"The best-informed market participants are sending a clear signal that the
party on Wall Street is going to end soon," said Charles Biderman, CEO of

TrimTabs' data on insider transactions is based on daily filings of Form 4,
which corporate officers, directors, and major holders are required to file
with the Securities and Exchange Commission.

In a research note, TrimTabs explained that insider activity is not the only
sign the rally is about to end. The TrimTabs Demand Index, which tracks 18
fund flow and sentiment indicators, has turned very bearish for the first time
since March.

For example, short interest on NYSE stocks plummeted by 10.3% in the second
half of July and margin debt on all US listed stocks spiked 5.9% in July,
while 51.6% of advisors surveyed by Investors Intelligence are bullish, the
highest level since December 2007.

"When corporate insiders are bailing, the shorts are covering and investors
are borrowing to buy, it generally pays to be a seller rather than a buyer of
stock," said Biderman.

TrimTabs also reports that the actions of U.S. public companies have been
bearish.  In the past four months, companies have been net sellers of a record
$105.2 billion in shares. 

"Investors who think the U.S. economy is recovering are going to get a big
shock this fall," said Biderman.  "Companies and corporate insiders are
signaling that the economy is in much worse shape than conventional wisdom

TrimTabs Investment Research is the only independent research service that
publishes detailed daily coverage of U.S. stock market liquidity--including
mutual fund flows and exchange-traded fund flows--as well as weekly withheld
income and employment tax collections.  Founded by Charles Biderman, TrimTabs
has provided institutional investors with trading strategies since 1990.  For
more information, please visit

SOURCE  TrimTabs Investment Research

Alison Simard, Media Relations, Stern & Company, +1-323-650-7117,; or Charles Biderman, TrimTabs Investment Research,
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