29 Consecutive Equity Mutual Fund Outflows

Tyler Durden's picture

Any minute now, any minute, we promise, investors will regain all their confidence in this non-charade of a market which reflects all the fundamental realities of the economy. Just not yet: last week saw the 29th consecutive outflow from domestic mutual fund flows, which incidentally surged to $2.8 billion from the $677 million outflow the week prior. Sarcasm aside, nobody except for CNBC's Fast Money is putting money in the market. Well, so are the Primary Dealers, and to an extend the Hedge Funds. Although now that the letter no longer have access to pervasive insider info courtesy of expert network, it may be up to just the Fed, HFT and the 18 primary dealers to take the Dow to 36,000. After all, there is a wealth effect to be created. Also, ICI reports last week muni funds saw a massive $4.8 billion outflow. Have no fear - this will also be spun as bullish. Incidentally, from its 2010 lows in July, the market has risen to fresh all time highs as investors have pulled just under $60 billion from mutual funds. Once Bernanke is done with his latest mandate which is nothing short of genocide, he is a shoe in to replace David Copperfield at the MGM.

And as a reminder, this is what insiders did last week:

In the first full week of the latest iteration of post-QE2 POMO,
which was supposed to see a dramatic ramp in stocks, the only thing we
have seen is the biggest insider buying to selling imbalance since the
data has been tracked. Overall, selling by S&P500 insiders was
8,279.5x times greater than buying (per Bloomberg).
There were 5 insider
buys for a total of $150,673, and 117 sales for a total of
$1,247,500,249. There is no point to even discuss what this data point
indicates.