Insiders are fleeing stocks like a Russian pilot fleeing a plane at a European air show (Bears Prowl Wall St. as Insiders Dump Stock - Reuters):

“Company executives are selling stock at a rate not seen in two years after a near 50 percent rise in the S&P 500 from a March 9 low. That suggests directors and managers may think stock prices are nearing the top end of their range in the current economic climate.”

This appears to be a rather strong indicator, as insider selling was probably rather high at some point in the prior two years.

“For brokerage Jefferies & Co., a significant increase in insider selling transactions as well as a decrease in short interest across most sectors of the S&P 500 demonstrates the weathering of the bear market rally.”

Basically, this means Jefferies & Co., considers this an indicator the recent rally is waning.

“In the second half of July, short positions held by investors fell 10.3 percent on the New York Stock Exchange and 5.1 percent on the Nasdaq, according to the exchanges.”

“Short interest on the NYSE is still higher now than it was at the beginning of the year, suggesting that a rally that runs on the back of bearish players forced to cover positions is still possible.”

Sure this is possible, but it’s also possible the shorts take over and begin to ride the market down.  It should be noted that short interest on the NYSE dropped from 10.3 to 5.1 at the end of July.  Thus, a large portion of shorts have already covered.  Maybe another couple hundred point run causes another big covering move by the shorts, but then the shorts would be almost completely out.

I’m betting we are either at the end of the rally or damn close.  Thus, I’m 90% cash and may go to 100% if this market is green tomorrow.  There has to be a buying opportunity just over the horizon…right?