What Insight is the Gambill Ratio Providing Us?

A few weeks ago (in a post linked here), we mentioned a few "flies in the ointment" in regards to the current conditions (at that time) of our Psychology Composite.  This morning I would like to share another indicator we've added to that list following the rally in stocks off the May/June low - the Gambill Insider Ratio.


The "smart" corporate insider buy/sell ratio came down and gave a positive signal in May and June as the market corrected.  But you can see (in the chart above) that this buy/sell indicator has now weakened back into the neutral zone.  This IS NOT negative, but often, before a final low is made, we see at least two signals deep into the green zone.  So...maybe so, maybe not, but another additional pull-back in the market here would likely produce that historical echo signal that would be a big positive.

Don Hays

If you are a subscriber to HaysAdvisory.com, click here to read our recent reports.  If you would like to learn more about the research and commentary offered by Hays Advisory, click here.

Please see important disclosures at the bottom of this page.