This Morning's Ink Research Events are extremely fluid, so it remains to be seen if the Index can regain its upward momentum. Insiders generally see the selloff as a buying opportunity with the INK Indicator which tracks the number of stocks with key insider buying versus selling over the past 60 days soaring above 200%. That means there are more than two stocks with key insider buying for ever one with selling. It is the highest level for the indicator since May 2020. We will feel more confident that a low is in for the INK CIN Index once the indicator peaks as that would signal we have seen peak insider buying which often happens around key support levels.
The overall Canadian market continues to have an undervalued reading as insiders bet against the Fed's dark side narrative. This is evident in the forest products group where we have seen insider buying in Interfor (Sunny; IFP), West Fraser Timber (Sunny; WFG) and Weyerhaeuser (Mostly Sunny; WY). The reaction of forest products insiders fits with the overall insider sentiment theme we see at the sector level. The economy-sensitive sectors of Energy, Basic Materials, Industrials and Consumer Cyclicals all have undervalued readings with more stocks having key insider buying than those with selling over the past 60 days.