Corporate executives and directors are selling stock before earnings season begins to ramp up. The ratio of the total amount of stock sales versus stock purchases in the last week was almost 5-to-1, according to the Vickers Weekly Insider newsletter. The 8-week moving average of this ratio is more than 4-to-1, according to Vickers.

    "It is not uncommon to see our readings reflect large sentiment swings during earnings seasons,” wrote Vickers’ David Coleman, an analyst with a long track record of decoding and investing upon insider transactions. “Still, given the recent decline in overall insider sentiment, we caution that the recent rally may be winded.”