Ink Research February 7, 2022 - While our eyes have been glued to the Energy sector so far in 2022, Technology has jumped out and grabbed our attention. The 30-day INK Technology Indicator starts off the week at a 10-year high of 1,400%. That means there are 14 stocks with key insider buying for every one with selling. While many of the stocks with buying are from the crypto-equities area such as January 28th morning stock Neptune Digital Assets (Mixed; NDA), there are plenty of names from the more traditional software area. So far, the buying has generally not been enough to push many names into the top 30% of our rankings, but we will be watching to see if any make our morning report screens over the next few weeks.
We will also be watching to see if the 60-day Technology Indicator confirms the move. This will be important as we are about to get into the thick of Canadian earnings season this week. If significant insider selling emerges in other names in the group after earnings are reported, our enthusiasm for the sector would be dampened. Nevertheless, insiders at this point are signalling that Tech pessimism is overdone.