Prior to the October sell-off, insiders were selling at a rate of 3 or 4 to 1. As the market was trying to find a bottom, insider selling dramatically dropped off. Now that the markets have recovered somewhat, corporate insiders are back to their selling ways.

Since November 2nd, insiders are once again 3-1 sellers over buyers. Lets look at every trading session since November 2nd.

Nov 2 B78 S175
Nov 3 B80 S244
Nov 4 B81 S264
Nov 7 B75 S208
Nov 8 B76 S176
Nov 9 B77 S194

To use a modern term "what's up with that?". I'll tell you what's up. Unlike a lot of people who get their advice from Wall Street, these insiders "really" know what's going on.

If you want to really get sick to your stomach, go look at how much stock Phillip Knight, the former CEO of Nike (NKE) has made from his stock sales. Today alone, Knight sold 275,000 shares netting him a cool $13,135,725. The real kick in the rear to hardworking people like you and I is this guy has been steadily selling multi-millions worth of NKE stock. Here's another kick in the rear, he has 4,047,593 shares left. Go multiply that out on your calculator.

So, what do these insiders see that others don't? Exactly what I have been telling you all a long:

1) The Fed is tightening and is going to continue tightening.
2) The economy is slowing and rates are still going up.
3) The governments inflation numbers are a gross misrepresentation of what's really happening.
4) The real estate market is on the verge of a painful decline.
5) The war in Iraq is a disaster.
6) Our trade and budget deficit is soaring.
7) As a country we are deeply in debt.
8) Consumers are deeply in debt.
9)We are entering the 4th and final year of a cyclical bull market.
The 4th year is historically a bad year.
10) Corporate earnings estimates will continue to be revised downward.

Other than these, everything is fine. The year-end rally is still a good bet, but as we approach the 1250 mark on the S&P, or hopefully 1300, its "Katy Bar the Door".