Summary

The S&P 500 has strung together two days of gains, with a pop of more than 2.8% for the first time since early November of 2024. Back then, stocks were coming out of the second-half October 2024 pullback. Meanwhile, the latest weekly insider-sentiment data from Vickers Stock Research suggests that insiders seem to think stocks are now a bargain. Looking at the major one-week sell/buy ratios from Vickers, we note that the NYSE/ASE one-week ratio is now 1.71 on a scale where anything below 2.00 is bullish and anything above 6.00 is bearish. The ratio was as high as 8.48 just a few weeks ago. For the standalone NYSE, the one-week ratio is 1.75 (again bullish) and was 9.00 a few weeks ago. For the Nasdaq, the current ratio is 3.14 (neutral), but it was as high as 14 at the start of February. One week does not make a trend, but it is a very good start. Of note, insiders historically jump in before many other investors when an apparent opportunity presents itself. The last time Vickers’ ratios were in bullish territory was late-October/November of 2023, and that turned out to be a very good time to buy stocks. On a sector basis, insider buying exceeded selling in Energy last week, with shares valued at $103 million bought versus $87 million sold, as well as in