Capital Flow Analysis
The Capital Flow screen visualizes how insider money moves between sectors over time. By aggregating the dollar value of all insider purchases and sales at the sector level, it reveals the directional flow of smart money — helping you anticipate which sectors are likely to outperform or underperform in the coming weeks.
Understanding Capital Flow
Capital flow analysis measures the net dollar difference between insider purchases and insider sales within each sector. When Technology sector insiders are collectively buying $50 million more than they are selling, while Energy sector insiders are net sellers by $30 million, it suggests a rotation of insider conviction from Energy to Technology. These flow patterns often lead price movement by several weeks, as insiders tend to act on information before it becomes widely known through earnings reports or analyst upgrades.
The flow visualization displays both the magnitude and velocity of these changes — a sector that suddenly shifts from net selling to net buying may represent an inflection point worth investigating further. Historical backtesting of insider flow data shows that sectors with the strongest net insider buying tend to outperform the S&P 500 by 3-7% over the following quarter.