Why were insiders cashing out ?

NYSE volumes have shrunk significantly, running as low as 30% below average, which could mean a few things. Whatever the reason, higher highs on low volume is generally not a positive sign.

There is one indicator flashing danger at the moment. We should be aware of it--the insider sell/buy ratio, which last week saw wild numbers on the sell side at 434:1.  For the week, $1.7 million worth of stock was bought in sixteen separate purchases, while 126 sales totaled just under $750 million.

Why were insiders cashing out in such manic fashion? Do they know something that we don't know? 

Many of the stock market experts continue to be extremely bullish, and you are hearing again the tired and bogus line that “This time it`s different”.

Don`t buy it, and be on top of reducing equity allocations or have a plan on the downside so you don`t get caught in the next down -50% market cycle.