Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cam Hui has been professionally involved in the financial markets since 1985 in a variety of roles, both as a quantitative equity portfolio manager and as a sell-side analyst. He graduated with a degree in Computer Science from the University of British Columbia in 1980 and obtained his CFA Charter in 1989.

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Thematic (Sector/Industry)

United states / Thematic (Sector/Industry)

Regular readers will know that we have been sounding cautionary technical warnings because of a negative monthly RSI divergence and a MACD sell signal for U.S. equities. This combination has been uncanny in the past at warning of major market tops.On the other hand, the latest report from Open Insider shows that corporate insiders, who are known as “smart investors”, have been buying the latest dip. How can we square the circle of these two contradictory signals? Should investors be buying or selling equities?We find that while corporate insider buying presents a possible opportunity to buy stocks, the valuation appeal of stocks is offset by the risks of macro policy uncertainty. Investors should assess recession risk and the evolution of the Sino-American trade policy risk before following the risk-on policy adopted by corporate insiders.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/069/373/original/Insiders.JPG?1541893204" class="editor-image img-responsive" data-smartkarma-image-id="69373"></figure>

Regular readers will know that we have been sounding cautionary technical warnings because of a negative monthly RSI divergence and a MACD sell signal for U.S. equities. This combination has been uncanny in the past at warning of major market tops.On the other hand, the latest report from Open Insider shows that corporate insiders, who are known as “smart investors”, have been buying the latest dip. How can we square the circle of these two contradictory signals? Should investors be buying or selling equities?We find that while corporate insider buying presents a possible opportunity to buy stocks, the valuation appeal of stocks is offset by the risks of macro policy uncertainty. Investors should assess recession risk and the evolution of the Sino-American trade policy risk before following the risk-on policy adopted by corporate insiders.

Insiders Are Buying, Should You Jump Into Stocks?