How Insider Selling Works... And Momentum Stalls

Let's get into it.

Good morning:

Pull up any insider trading dashboard and you'll see the same movie on repeat…

Executives are typically dumping shares like they're evacuating a burning building.

Most people believe that it’s for one reason… They must know something we don't.

Here's what's actually happening.

Most C-suite compensation is wrapped in stock options and RSUs. When these executives vest, they don't frame the certificates—they sell them. Why?

Mortgages don't accept shares of XYZ Corp as payment.

This isn't bearish behavior.

It's how they get paid.

For your average CEO, selling vested stock is as routine as cashing your paycheck.

No hidden agenda. No secret knowledge. Just bills to pay and lifestyles to fund.

Imagine 80% of your net worth tied up in one stock.

Now, imagine that the stock is also your employer. Feeling nervous yet?

That's the executive's dilemma. Any financial advisor would scream "DIVERSIFY!"—and they'd be right.

So insiders set up 10b5-1 plans, those robotic selling programs that d…