Summary
As of the end of last week, the S&P 500 was up 16% in six weeks; the Nasdaq 100 had skyrocketed over 26% in six weeks; and the Nasdaq Composite had jumped 25% in six weeks. No doubt, the stock market is on fire. Insiders, meanwhile, are neutral. Those two scenarios can certainly co-exist, suggesting the assumptions that an imminent correction is not likely but that stocks also are not cheap. Looking at the numbers in the weekly insider-sentiment data from Vickers Stock Research, the NYSE Eight-Week Sell/Buy Ratio is 4.88 on a scale where neutral territory runs from 2.00 to 6.00. The Nasdaq ratio is 5.57, and the Total (all exchanges) ratio is 5.23. Drilling down to insider sentiment at the sector level, long-term activity has turned neutral in many sectors, with moves that are both positive and negative in direction. On the positive side, Communication Services is now recording a neutral Eight-Week Sell/Buy Ratio of 5.4, improved from a bearish reading of 6.1 last week and markedly improved from the highly bearish reading of 17.7 only four weeks ago. On the flipside, four sectors have moved from bullish to neutral this week, including Consumer Discretionary, Industrial, Materials, and Rea
