Insider Selling To Buying: 2,341 To 1

Tyler Durden's picture

Sorry kids, we just report the news... as ugly as they may be. After last week saw an insider selling to buying ratio of 1,411 to 1, this week the ratio has nearly doubled, hitting a ridiculous 2,341 to 1. And while Wall Street's liars and CNBC's clowns will have you throw all your money into "leading" techs like Oracle and Google, insiders in these names sold a combined $200 million in stock in the last week alone (following Oracle insider sales of $223 million in the prior week). Insiders can. not. wait. to. get. out. fast. enough. This Fed-induced rally is nothing short of a godsend for each and every corporate executive. But yes, there may be value: there was insider buying in 2 (two) companies last week: General Dynamics and Best Buy, for a whopping total of $177,064. At the same time sales were a total of $414 million: so is anyone wondering why JPMorgan is reopening its gold vault... Anyone left holding the bag on this market when the FRBNY props are taken away, will be left with the same return as all those investors who entrusted their money with Madoff. Guaranteed.

Source: Bloomberg

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mule65's picture

They sure left a lot of dough on the table.

Tyler Durden's picture

Somewhat like that exponential phase in the last months of Bernard L. Madoff Investment Securities LLC

tmosley's picture

I have the feeling that the return under Madoff was probably quite a bit better than what we are going to see here.  At least they got some money back that still had some purchasing power.

Bob's picture

Perhaps it will depend upon where they put those dollars. 

I suspect that we may lose our affection for gold, bitchezzzz.  JPM vaults and all . . .  

Yikes's picture

Tyler,

Do you have any history you can show us on insider trading leading up to the 2008 financial crisis?  It would help put this activity in some kind of historical context. 

Here's another thought: All these insiders are taking their capital gains this year before the increases kick in next year.  Could it be that these insiders, insiders who are very well connected to Washington, know something about the Bush tax cuts and what the Dems are planning and that we don't?

 

snowball777's picture

Not nearly as much as you will have.

cougar_w's picture

They would not agree. And they are hugging the inside track on the race to the bottom. The rest of us are about a half a lap back yet and can't even hear the hoof-beats of the guys leaving the field right now.

mule65's picture

LOL -- I hear bears running!

Uncle Sugar's picture

Uncle Ben better announce a MONSTER QE2 come November or everything is going to crash. Stocks, bonds and even PM's.

Buy the rumor. Sell the news?

 

 

cougar_w's picture

Prediction: The new Congress will return in January after a bitter election and failed "holiday" [gag] season and propose the Mother of All Tax Relief Apocalypses in the first 3 days of session. It will become law in less than 30 days by a lopsided bi-partisan vote. When you see that, know that the wheels are coming of the entire country.

Turd Ferguson's picture

WOW! That is a truly astonishing figure.

mynhair's picture

Don't miss the LPS train.  The suit get thrown out, or what?

stickyfingers's picture

Has anyone noticed the increasing number of stocks going parabolic?

reading's picture

As in the whole market?  'Cause yeah I did notice and wow you really have to wonder. funny though...What does someone know at AXP...sucked wind yesterday and getting beaten like a red-headed step child today...suddenly the market cares about an analyst downgrade?

Bill Lumbergh's picture

Aside from the market pricing in $100 earnings for the S&P, about 5 more QEs, and the collapse of the US dollar, everything seems normal to me.

-1Delta's picture

Things are normal! Go buy AAPL and AMZN and NFLX!!!!

 

The dollar is such a crowded trade...

 

All buying today are trully suckers...

reading's picture

Well, you forgot that aapl has to announce earnings of just over $one gazillion plus intro the new iAmsostupidiamspendingallmymoneyonthisgadgetidontneedgadget plus the banks will miraculously be super fantastic with all their great REO inventory and super great mortgage programs, but other than that things seem really really normal.

traderjoe's picture

HOG up 9%. AAPL, GOOG up 3%. BIDU up 6%. Ethan Allen up 10%. 

Well played for now, Uncle Ben. In for a penny, in for a pound...

EscapeKey's picture

Well, yes, but Uncle Ben bought at LEAST twice that, so overall it's strongly bullish.

Bill Lumbergh's picture

Cramer should run with this story...a contrarian indicator to BUY BUY BUY and become filthy rich.

themosmitsos's picture

The Recession is Over === Mission Accomplished

SheHunter's picture

Yeah right.

Just like Bushie-boy and a few months ago the O'B-man both told us the Iraq war is over.

bigdumbnugly's picture

kinda reminds me of an old geezer offering some young, innocent kid whatever candy he's got on hand just to get them into his car...  pretty sickening if this is the case.

sweet ebony diamond's picture

Larry Ellison is bailing out of his ponzi.

He is the American Dream.

I can't wait for his book.

SteveNYC's picture

Fed bailing out insiders as the HFT algos push markets higher. Capitalism you can believe in.

Assetman's picture

Capitalism you can believe in = Hope for the Elite

firstdivision's picture

Actually this is the Fed's just pumping stocks to dump their holdings in GM and AIG and not lose as much that would cause a revolt against the Fed itself.

tahoebumsmith's picture

At what point does this become illegal? Seems to be manipulation overload to me...Isn't there any lawyers out there that find HFT traders in conflict with the Securities Exchange Act of 1934? 2010 will probably go down as the most corrupt year in American history. It all started when the largest bank bonuses in history were handed out at the beginning of the year.

MarketTruth's picture

Something being illegal for inside traders and someone actually getting caught by the SEC/CFTC/etc., then prosecuted and going to jail are totally separate issues. They are 99.99999999% mutually exclusive.

minus dog's picture

It's not like one set of laws for one group of people, and another set for another group of people is anything new.  I guess some people are just getting a wakeup call.

MrTrader's picture

Word on the Street is Oracle CEO Larry Ellison is selling his stocks very wildly. Of course - as usual - very well informed unnamed people report...:=)))

mynhair's picture

Sell those USTs and cover, dammit!

Just 52 more pts.

citationneeded's picture

How many of these insiders know that earnings are going to blow?

-1Delta's picture

U r presuming earning matter...

Hey everybody, just incase you have not heard, the FED is going to do QE2 so go short the dollar bc that will make US earnings explode!!!!

Sheep are going to be slaughtered... this is all a f**** joke.

cossack55's picture

I am soooo disappointed that I do not work for one of these dynamos and got filthy rich and then sold all my stock and let the stinky, impolite and fat Joe Tall Boy (can't afford a 6 pack) pick up the tab and then be found 6 months later air dancing under a lamp post.  Oh well.

AccreditedEYE's picture

3:00PM!! Let's watch them try to pull the pig through the hoop. This is a BIG hoop. Flash Crash highs remain intact for now. Don't blow it Brian! LOL

Mxriderbp's picture

Reed Hastings and the Netflix posse have been selling off shares at a rapid pace as well. I received two emails of SEC alerts of insider transactions yesterday alone. Haha.

t0mmyBerg's picture

I have been seeing this same thing over the last several weeks in a somewhat broader set of issues in an email I get called Insider Summary Update by J3SG.  Massive Insider sells compared to buys, most noticably in terms of dollars but also in terms of number of transactions.  And yet the market screams higher.  So I guess all of these insiders are just wrong. Cough Cough...

SheepDog-One's picture

The formula seems simple- Pump $5 billion into stocks daily to buy insider shares being dumped, US taxpayer gets the bill. Biggest in your face total transfer of wealth in history.

RobotTrader's picture

Wall St. PigMen who are long stocks are getting richer by the minute.

Low grade hedge funds who are short and fighting the tape are getting blowtorched.

 

Hephasteus's picture

Psst. Over here.

You want to buy some oracle stock. Primo quality. The real deal. Just look at the certificates.

-1Delta's picture

Psssst.. NASDAQ net spec as %OI is 2nd largest ever- anybody want some AMZN, AAPL?

Pssst, the NASDAQ is as full retard as the dollar right now...

 

kathy.chamberlin@gmail.com's picture

you changed your avatar. am traveling and didn't bring along my mag glass. what are you?

truont's picture

I foresee a big whipsaw coming our way...

First you get screwed fighting the tape...

Then you get screwed when you capitulate and join the party long...

I read this in the book, "How to get the middle class to transfer their wealth to its rightful owners".

SheepDog-One's picture

Getting richer in rapidly declining FRN's! Wow how is that workin out for them!

Minion's picture

There are two types of pig men:  professional price chasers (like you), and professional market makers.  One chases price, the other buys weakness and sell strength.  One is the prey of the other.  Price chasers get thrown off the horse when it whipsaws, market makers simply provide liquidity and pile up the (small, consistent) profits.  As much as I admire your ability to point out market moves after they happen, I detect a whiff of cynicism, as if the conditions made you into  what you have become. 

It is caused by that gnawing feeling at your conscience..... you provide no service to the market ("price discovery" isn't really necessary in this environment).  Market makers provide a service (witness the meltdown when the bot is asleep).

 

system failure's picture

MADNESS IS AT AN EXTREME!!!

Insiders are telling us to buy cuz there will be blood in the street soon enough huh. That explains why we have POMO days to buy off the dumb insiders. Insiders are laughing at the FED POMO days to offload. WHICH IS IT? lol

DESPARATION OF THE FED IS AT AN EXTREME!!!