When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
On CNBC's "Fast Money Halftime Report," Liz Young picked iShares US Healthcare ETF (NYSE: IYH) as her final trade on Wednesday. She likes it because it is not definitively a growth or value place.