Insider Action Says It's Not Too Late to Sell

That's hindsight, of course, but hindsight that offers a useful reminder: Don't assume that it's too late to sell.

It's more obvious now than a month ago that economic and company earnings news will continue to be awful for much longer than all those "going all in" bottom-callers thought last month. From a pure secular-risk viewpoint, there would seem to be plenty of bad news flow likely in the future to justify beefing up one's short positions.

And even if another rally attempt survives the immense fade it will face by all of us investors who foolishly clung to our longs under the belief that stocks that had lost 50% in a month finally had a semblance of value to protect further downside, does anyone really believe that a rally would be strong enough to break through resistance levels on the first try?

No way. So even if you "just know" that a bounce is imminent, you'd still do well to keep a few short ideas in button-down mode to act on if and when it occurs. And my Short-Sighted tables are a great place to start looking for those ideas.

This article was written by Jonathan Moreland, whose newsletter, "TheStreet.com InsiderInsights," parses mounds of data on insider trades to find investable ideas.

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At the time of publication, Moreland had no positions in stocks mentioned, although holdings can change at any time. Jonathan Moreland is director of research and publisher of the weekly publication InsiderInsights, founder of the Web site InsiderInsights.com and the director of research at Insider Asset Management LLC. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, Moreland appreciates your feedback; click here to send him an email.