CHART OF THE DAY: Ignore All The Headlines About 'Insider Selling'

button more charts
button chart prev
button chart next

When corporate insiders buy and sell shares of the company they work for, some people feel compelled to follow.

The rationale is simple: no one knows a company better than an insider.  Therefore, they’re more likely to buy if things are getting better and they’re more likely to sell if they think things will get worse.

Unfortunately, the data doesn’t seem to support this.

Jim Stack of Investech (via Barry Ritholtz) has created this annotated chart of the Dow Jones Industrial Index.

It includes some headlines of insider trading activities.

The chart speaks for itself.

Chart of the day shows the performances of the dow jones industrial average with annotated news headlines, march 2013.

Photo: Investech Research via The Big Picture

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.