“Corporate executives are just as queasy about the stock market as the average investor,” writes Karen Talley in today’sWall Street Journal Online.

“Insiders aren’t buying or selling their company’s stock, according to the latest data from Thomson Financial, which show purchases by executives and directors totaled $85 million in January. That was just the third time in eight years purchases have fallen below $100 million. Sales by insiders hit $689 million last month, the lowest level since July 1995.”

“The data reflect the overall market, where professional and individual investors alike are stuck like a deer in a headlight, not wanting to buy or sell stocks for fear of the next geopolitical or economic jolt.”

“On the corporate front, ‘it’s a very unusual development,’ said Lon Gerber, director of insider research at Thomson. ‘We haven’t seen this level of inaction in years.’ “

“Only 899 insiders bought their company’s stock in January, the lowest level since September 1997. The number of companies where buying occurred was just 477, the lowest level in at least five years.”

“The development ‘is especially troublesome on the buy side, because with stocks so low, you’d think these executives would want to act,’ Mr. Gerber said.”

“It is nearly an en masse morass, with the inaction affecting most industry sectors and stocks regardless of their market capitalizations. Buying fell in January from December levels in 11 out of the 14 industries that Thomson tracks, with the exceptions being consumer durables, such as appliances, and energy and transportation. The latter two are described by traders as beaten-back groups that brought out bargain hunters last month.”

“Selling dropped from December levels in all but four of the 14 groups, with financials, media, industrials and consumer durables the exceptions.”

“Technology, one of the most talked-about areas, saw insider buying fall to $8.3 million worth of stock in January, the smallest amount in more than a year, while selling by insiders came in at $162 million, the lowest since September of last year, right before the market hit a multiyear low.”

“Companies where notable buying did occur in January include Energizer Holdings Inc., Kraft Foods Inc. and General Dynamics Corp. Considerable selling took place at webMethods Inc., M&T Bank Corp. and drug researcher Covance Inc., Thomson said.”

“But mainly, January was a slow month, with the positioning seen more as fence-sitting than outright bearishness.”