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Insider Selling To Buying Update: 229 To 1

Tyler Durden's picture





 

Some earth-shattering insider buying in the past week (a fact not seen in months), courtesy of a large block of stock purchased in Monstanto (for $1 MM), Intel ($384K), and GE ($334K), has done miracles to the general insider selling to buying ratio, and almost managed to offset the $114 million sold in Google, $100 million in Oracle, and $30 million or less sold in Safeway, Discovery Communications, Costco and a total of 61 other names. In the week ended October 22, S&P 500 insiders sold 229 times more stock than they bought, per Bloomberg. To be sure, this is a vast improvement from last week's 2,000+ plus ratio, yet still the rolling insider average selling to buying over the past 8 weeks is about 1,000 to 1. At least insiders continue to benefit from ever more irrational prices in stocks from which they can bail at increasingly loftier levels.

 


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Mon, 10/25/2010 - 11:36 | Link to Comment 101 years and c...
101 years and counting's picture

Why should retail be the only ones that benefit from Ben's market rally?  I love it.  Retail and insiders are pulling money out as quickly as possible, leaving the Fed and PD's as the bagholders.

Mon, 10/25/2010 - 11:37 | Link to Comment SheepDog-One
SheepDog-One's picture

So looks like the insiders are about done dumping to the FED? Could be I guess, its about that time...less than 2 weeks till Q/E2 debaucle, which I still say cant and wont be delivered.
Meanwhile the 'markets' are chasing 70 P/E stocks around like drunken frat boys on a lone hooker at the kegger.
I believe those who think this just slouches on and on like this are in for a rude and sudden awakening soon.

Mon, 10/25/2010 - 11:38 | Link to Comment HarryWanger
HarryWanger's picture

I've asked this before but does anyone know what the "average" ratio is for this time of year historically. I don't think this data is that far out of line. I personally know a fair amount of people whose corporate "performance shares" and stock options usually vest about this time of year. Wouldn't it make sense that they would take the money? The always have in the past.

Mon, 10/25/2010 - 11:44 | Link to Comment SheepDog-One
SheepDog-One's picture

Right Harry is all just normal, no doubt.

Mon, 10/25/2010 - 11:48 | Link to Comment HarryWanger
HarryWanger's picture

Just asking for solid data. Unlike you, I don't just assume everything at face value without have a base line for comparison. So without that data, it's foolish to comment, right?

Mon, 10/25/2010 - 11:50 | Link to Comment SheepDog-One
SheepDog-One's picture

Well unlike you, I'm simply not assuming its all just normal.

Mon, 10/25/2010 - 12:00 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

 

Interesting read from up top. ... We will see how things play out. The 200 week moving average if broken and held for a time would be very bullish... But if the market turns as we near the 200 look out below.

 

 

As you can see, the S&P 500’s break below the 200-week moving average was what heralded the beginning of SERIOUS trouble for stocks in 2008. And since the Crash, it has acted as THE line of resistance for stocks’ rally. Indeed, it stopped stocks dead in their tracks at the April 2010 top.

 

Below is a close-up of the market’s action for the April top through today. As you can see, we’re about 12 points off from the 200-week moving average. Bear in mind, we don’t necessarily need to touch the line (we didn’t in April), so as of right now

stocks are in danger of a severe reversal at any time.

 

http://www.zerohedge.com/article/graham-summers%E2%80%99-weekly-market-f...

Mon, 10/25/2010 - 11:57 | Link to Comment SheepDog-One
SheepDog-One's picture

70P/E Google and Amazon insiders dumping like mad, hey the FED is the only buyer so let them knock themselves out and end up the ultimate bagholder.
Thats the root of this mania money printing and monetizing, the wheels fall off of it all quite soon.
$4 trillion Q/E? Let them dream on, it will never happen, Nov 3rd is a huge unhinge day from this present mania as anything Bernanke can say will be a huge disappointment to the money print mania crowd.

Mon, 10/25/2010 - 12:30 | Link to Comment morph
morph's picture

BILL GATES IS DUMPING LIKE MAD TOO!!!

 

....Oh wait he has been for about 5 years now.

Mon, 10/25/2010 - 11:45 | Link to Comment bob_dabolina
bob_dabolina's picture

Well, there is 100% home financing still available.

If interested contact this agent I found on realtor.com

http://www.realtor.com/realestateagents/Monica-Kershaw-100-Financing-Still-Available_Florence_Sc_838425_431899942

buy banks?

Mon, 10/25/2010 - 11:40 | Link to Comment Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Tyler,

Is today Pomo day?

Mon, 10/25/2010 - 12:01 | Link to Comment whatsinaname
whatsinaname's picture

nope tomorrow is but everybody is so happy about the G20 meeting that its a reason to celebrate !!

Mon, 10/25/2010 - 11:43 | Link to Comment yoganmahew
yoganmahew's picture

Something I always wonder when I see these figures... how many of these are forced sellers?

Mon, 10/25/2010 - 11:46 | Link to Comment SheepDog-One
SheepDog-One's picture

'Forced sellers' what do you mean? Like unwilling date rapes or what?
Like Harry says, I'm sure its all just normal and nothing unusual here at all.

Mon, 10/25/2010 - 12:03 | Link to Comment yoganmahew
yoganmahew's picture

Like, for example, having used their upcoming options as collateral on loans for other investments and are now, effectively, being forced to a margin call as their other investments (property, REITs, banks!, Iceland!) have hit the skids.

Mon, 10/25/2010 - 12:17 | Link to Comment SheepDog-One
SheepDog-One's picture

Well, if theyre being forced to margin call, then its a miracle that they happen to be forced to dump as all just melts higher daily! Nice predicament to be in.

Mon, 10/25/2010 - 12:50 | Link to Comment yoganmahew
yoganmahew's picture

Um, why do you think the melt-up is happening? Who is QE effectively saving?

Mon, 10/25/2010 - 11:45 | Link to Comment Oh regional Indian
Oh regional Indian's picture

I remember my time, 1 step away from the insiders at the Valley of Silicon(e)!

They can be "encouraged" to buy just as they are told when to sell.

Even this indicator of "Con"fidence is meaningless now, actually has been for a while.

Remember, the boys (and gals) who play by the rules, are still following a playbook. Nothing random. In fact, as things seemingly spin further and further put of control, the insiders will be playing by tighter and tighter rules.

Such is how world controlling games are played.

Nothing random or bankable here.

Get physical, get silver, pare some gold into silver.

It'll be back to the basics sooner than we can imagine.

ORI

http://aadivaahan.wordpress.com

 

 

Mon, 10/25/2010 - 11:49 | Link to Comment SheepDog-One
SheepDog-One's picture

I dont tell anyone to not buy gold and silver, although I personally dont think thats the right play here. Instead buy pint bottle cases of Jack Daniels, as many as you can, for a far better bater item.
Next, stock up on as much clothing as you can, (check cotton commodity action) food, ammo, etc.
This is not your dads 70's style annoying pesky recession, this is a full collapse.

Mon, 10/25/2010 - 12:55 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Hey Sheepdog, I like the tone and content of your comments in general. Always refreshing.

ORI

 

PS: I agree.

Mon, 10/25/2010 - 13:02 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Hey Sheepdog, I like the tone and content of your comments in general. Always refreshing.

ORI

 

PS: I agree.

Mon, 10/25/2010 - 14:04 | Link to Comment Oh regional Indian
Oh regional Indian's picture

I'm planning to stock up on Beedi's (Indian smokes, hand rolled wonders).


Also, slightly off topic but generally germane to the predicament we are all collectively in, here is a little from Tom Despatch, quite mind-blowing...


According to a Washington Post series, Top Secret America, by Dana Priest and William Arkin:


“In all, at least 263 organizations have been created or reorganized as a response to 9/11… Some 1,271 government organizations and 1,931 private companies work on programs related to counterterrorism, homeland security and intelligence in about 10,000 locations across the United States… In Washington and the surrounding area, 33 building complexes for top-secret intelligence work are under construction or have been built since September 2001. Together they occupy the equivalent of almost three Pentagons or 22 U.S. Capitol buildings -- about 17 million square feet of space.”


Article here: 

http://www.tomdispatch.com/blog/175308/

 

Very Burning Platform, calmer voice though.

 

And then the sordid saga of DTC (the Deposit Trust Company) and it's interestingly named sub...CEDE and Co? If you are not familiar with the DTC issue and the implication of beneficial owner vurses registered owner, please check out this story I stumbled upon...

http://ming.tv/flemming2.php/__show_article/_a000010-000923.htm

 

What do you think? Especially the end, UN/IMF/WB..... it all does seem to tie together. And this is from October 2003. Look at how much stock fraud has exploded since then....

 

ORI

 

http://aadivaahan.wordpress.com



 

Mon, 10/25/2010 - 11:48 | Link to Comment treemagnet
treemagnet's picture

Yeah, options are part of normal compensation for sure - but not at ratios like 1000:1, I always thought that it was a double digit:1.  To the point, why sell if you know its gonna be sunshine and unicorns forever very soon?

Mon, 10/25/2010 - 11:49 | Link to Comment treemagnet
treemagnet's picture

Yeah, options are part of normal compensation for sure - but not at ratios like 1000:1, I always thought that it was a double digit:1.  To the point, why sell if you know its gonna be sunshine and unicorns forever very soon?

Mon, 10/25/2010 - 11:53 | Link to Comment SheepDog-One
SheepDog-One's picture

So now the entire 'economy' is based upon 70 P/E insane stock chasing again? While those same insiders are dumping hand over fist? This is ridiculous, the maniacal bubble blowers must be stopped.

Mon, 10/25/2010 - 12:02 | Link to Comment whatsinaname
whatsinaname's picture

they cannot be stopped, Bwaney is about to get re-elected.

Mon, 10/25/2010 - 12:22 | Link to Comment SheepDog-One
SheepDog-One's picture

Uh oh dont lok now....but Bawney is 'behind' in the polls...pun intended.

Mon, 10/25/2010 - 12:09 | Link to Comment RobotTrader
RobotTrader's picture

Insider buying and selling means nothing.

All that matters is what the hedge funds are doing.

More specifically, who is short, and how much.

Too many "macro" funds picking companies making good money and shorting them for no good reason.

Examples:

FSLR now has 22% of its shares sold short, 9 days to cover, and a 24% ROE.

DO has 28% sold short, 8 days to cover, and a 32% ROE.

Mon, 10/25/2010 - 12:21 | Link to Comment SheepDog-One
SheepDog-One's picture

OMFG what the hell happened to you RoboTrader? I remember a time where you had good posts! What is this shit...'only thing that matters is hedge fund shorts' wow fucking useless as tits on a hog, not to mention your bubble pumped avatar. I cant wait until this QE Manna wildly disapoints in a few days, see ya 20% lower immediately.

Mon, 10/25/2010 - 12:26 | Link to Comment SheepDog-One
SheepDog-One's picture

I can just see RobotTrader in post USA armageddon, as Bartertowns lone hedge fund manager telling folks its a good time to go long seashells right now....too many seashell shorts out there and putting out recommendations to just leave the fuel and walk away....just walk away....too many fuel shorts LOL!

Mon, 10/25/2010 - 12:27 | Link to Comment Nedly66
Nedly66's picture

Damn wtf is up ORCL... Insiders are bailing ship, while the stock is ramping up? Ol Larry Ellison sold almost $600 million since Sept. 17, now the other officers are joining in too...

What gives?

Mon, 10/25/2010 - 13:31 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Oracle/Ellison = Classic Govt. insider company/person

So, maybe the canary in the tech coal mine?

It is (the) Oracle sending you a sign after all ye'know!

ORI

http://aadivaahan.wordpress.com

Mon, 10/25/2010 - 12:37 | Link to Comment darsizzle
darsizzle's picture

Why do you guys want the market to go down so badly?

Mon, 10/25/2010 - 13:15 | Link to Comment Cruel Aid
Cruel Aid's picture

Because chasing an irrational overbought market seems dangerous +/- foolish.

 

Mon, 10/25/2010 - 13:28 | Link to Comment Minion
Minion's picture

It's not that we want it, it's that we know the only thing preventing it from happening is the feeling, or false belief, that the central bank will be the bidder of last resort.  Greenspan did not prevent the bust after 2000........ all he could do was inflate another bubble in housing.  Bernankie is blowing bigger bubbles in commodities, emerging markets, and bonds than stocks.  If you want to chase price, go for the fastest climber.  :)

Mon, 10/25/2010 - 13:17 | Link to Comment slaughterer
slaughterer's picture

"What do you guys want the market to go down so badly?"

To see fundamental analysis once again respected... to see the decline of the US at fast forward speed... to make sh*tloads of money

Mon, 10/25/2010 - 14:18 | Link to Comment EZYJET PILOT
EZYJET PILOT's picture

To end the belief amongst the banker wankers/media shills, that corruption is good and always pays, thanks to Mr. Taxpayer. 

Mon, 10/25/2010 - 22:08 | Link to Comment cowdiddly
cowdiddly's picture

To return to when news events, fundamentals,and valuation was/were relevant to stock market direction instead of immunity and one direction. Or before shorting was outlawed.

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