Insider Selling Hits All Time Record Of $4.5 Billion In Prior Week As Everyone Is Getting Out Of Market

Tyler Durden's picture

Insiders have officially marked the top of the stock market: last week's insider selling of all stocks (not just S&P) hit an all time record of $4.5 billion. This is the biggest weekly number ever recorded by tracking company as Sentiment Trader highlights no other week before had more than $2 billion in net selling. Furthermore, selling in just S&P companies hit a whopping $2.8 billion: over 4 times more than the week prior! As such the ratio of insider selling to buying is now meaningless. Even Bloomberg, which traditionally just posts the data without providing commentary to it, highlighted this ridiculous outlier: "Insider selling at Standard & Poor’s 500 Index companies reached a
record in the past week as executives took advantage of a two-year high
in the stock-market to sell their shares.
" We hope those retail investors who dared to reemerge in the stock market and play some hot potatoes with the big boys, enjoy their brief profit as they once again end up being the biggest fools.

Here is a stunning chart of insider trading activity, courtesy of SentimentTrader:

And this is what insider buying to selling in the S&P looked like last week. LOL.

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Bill Lumbergh's picture

So much for the Bernanke thesis of the "wealth effect".

tunaman4u2's picture

On the flip side of all this selling, these guys just got dollars instead of stocks... lets see how that works out. 

I just hope they don't move into Silver, I NEED a pull back! 

Fish Gone Bad's picture

The market usually tanks when everyone thinks things will go on forever. This time it is indeed different. Everyone has had 2 years to get ready for our impending economic collapse and no one wants to a bath.

iamse7en's picture

Yeah, I would like a pullback as well...  Nevertheless, I'll be buying silver even at $100... it's MONEY, not currency.

jimijon's picture

I like your AOCS avatar!

jus_lite_reading's picture

Can you blame them for selling? They know that the FED is pumping up their stock price and it's not worth half as much as it is now. They are locking in profits. The suckers are buying. Same game, different name.

cocoablini's picture

The wealth effect is even easier to control because there is no profit motive in the stock market anymore. People selling now are locking in gains. The rest of the ownership is via the government through POMO bank cash trade in money. Banks are specifically told not to sell stock if they participated in the Pomo trade in. They were able to trade toxic poo for bonds and then cash to gun the stock market.
Even a declining equity is greater than any toxic asset or derivative.
There is no real motive to sell until the FED gets audited or a threat to bank bonuses. Then the banks rebel, and flash crash the whole thing.
It is easy to control the stock market now- the bond market which is 80x bigger is harder to control- that's the big problem for Benny and the ink jets.

BRAVO 7's picture

go to now ye rich men, weep and howl for your miseries that shall come upon you.your riches are corrupted,you have lived in pleasure and been wanton. this day a grievous sore of poverty hath been left on the doorstep of AMERICA,thou art declared to be ICHABOD.
behold a pale horse

flattrader's picture


You wrote--

>>>It is easy to control the stock market now- the bond market which is 80x bigger is harder to control- that's the big problem for Benny and the ink jets.<<<

Not so.  Only about twice as big.

This is important to understanding how things may come unraveled and their relative importance.

Do your homework.  Don't shoot from the hip.

Minion's picture

Strangely enough, the second lowest sentiment point on that graph correlates with the early half of the last running of the bulls........  nowhere near the top.


DaveyJones's picture

he meant the "poor health effect."

flagg707's picture

Oh, I think the Bernanke "wealth effect" is doing exactly what it was intended to do - support the "plutonomy" and allow the Playerz to get out with as much liquid cash as they can prior to the coming, uh, realignment in market values.

jus_lite_reading's picture

"Realingment" in market values. I like that. That will occur after the "economic earthquake" with the catalyst being periphery defaults... T minus 4 days and counting.

Silverhog's picture

This surprises me. I didn't think there was anybody left.

EscapeKey's picture

You thought executives had stopped granting eachother oversized option grants?


cowdiddly's picture

Exactly, Most people have not figured out that with the size of these options grants to upper management, the companies profits will never have anything left for shareholders. In a lot of cases, the companies future profits are distributed to the bonus pool leaving no hope for shareholder increases. This is why stocks have not appreciated over the last decade. The money was already stolen right under your nose. And all they pipe about is shareholder value. LOL  

SteveNYC's picture

Right you are. If you want to own equities, own them in Australia or Canada. Not to say that from a growth perspective they will perform better than US equities (although they probably will) but the dividend yields are for real. Profits ACTUALLY get distributed to shareholders, not just management. Cashflow actually exists in these countries.

sheeple's picture

no worries! POMO is coming up tomorrow!!!!!!

embrace "changes" =)

TraderMark's picture

Jeremy Grantham video to be aired at 4:30 PM today (29 minutes)

[Video] CNBC - Jeremy Grantham Speaks


“The Fed has spent most of the last 15, 20 years manipulating the stock market, whenever they feel the economy needs a bit of a kick,” he added. “I think they know very well that what they do has no direct affect.”

LongSoupLine's picture

Brian Sack to the rescue!!

prophet's picture

Sentiment Trader rocks!

max2205's picture

Today is a good day to die....or flash crash without the dead cat bounce

dehdhed's picture

wouldn't surprise me because if they're gonna do it, this may be their last chance for awhile.

SheepDog-One's picture

But the Zerohedge bulls insist the place to be is IN the market waiting for DOW 36,000, so that a cash-out can happen when the US $LOLlar is -0-. I never thought it was a good plan myself, I feel much better off with the PM's, bullets, beans, etc.

Dagny Taggart's picture

Perhaps all the insider trading is coordinated. The PDs have the insiders sell part of their holdings. A pat on the back for a job well done for the banksters. "Take your profits, boys. And don't forget to cut yourself a righteous bonus as well." That spooks markets so PDs can buy lower when QE ass activity restarts. Except, I think there's a fly in their soup.

SheepDog-One's picture

'QE ass activity'

I think it all centers around that indeed!

hettygreen's picture

Ok so we know who is selling (company insiders) and how much (a whole shit-wack) but who exactly is buying? What sort of alchemy is at work here for such "robust" selling to be met with new highs? I thought all the mutual funds were at record low cash levels? I know this is crazy but why do I get the feeling government is the buyer and the bond market is just starting to catch on?

SheepDog-One's picture

If the bond market guys are only now starting to catch on that the FED is the only buyer, then we are well and truely fuked!

Popo's picture

Just waiting for the right trade...

It'll come ... And then Ben will be hog tied and squealing like a pig.

Do not mess with Mr. Bond Market. It makes him.... Angry....

firstdivision's picture

They are selling to buy more NFLX and LVLT...look at those stocks go since open.  This is going to be spectacular now that the seams are tearing. 

jory's picture

Ballmer dumped $1 billion worth of Microsoft Dummies.  That's the reason.  No reason to report facts when Hype works so much better.  Buy Gold Lemmings.  LOL

Jake3463's picture

4.5 billion - 1 billion is 3.5 billion.  Still a ridiculous number compared to insider buying transactions.


How did you beat the math question to post. 

prophet's picture

Bad read dude- even without Balmer it was $3.6B - still a six year high, but why do diligence when being flippant works so much better.

ColonelCooper's picture

You're oh so correct.  If you subtract the billion pulled out of Microsoft, it's only a record sell off by 1.5 billion.  Pure hype.  Move along.


SheepDog-One's picture

What are 'gold lemmings' and where can they be purchased?

SheepDog-One's picture

And dont look now, PM punchers, but gold and silver are again deep in the green. Damn Harry must be coughin up blood by now.

Minion's picture

I think you're the one with the axe to grind.  :)

trav7777's picture

so who in the holy hell is buying?  Insiders are selling, mutual funds are outflowing...where is the mkt support coming from?

I think this only leaves the Fed...

flash crash day showed us that there are NO size buyers even 10% below last...

EscapeKey's picture

Lots of buyers... the PDs, the PPT, the... er, did I mention the PDs?

ColonelCooper's picture

Trav.  Stop asking questions.  They only serve to bring into question the effectiveness of the recovery.

nedwardkelly's picture

MSFT accounts for most of the sales, of which Balmer is responsible for nearly all of it. Balmer sold $1.3bn of MSFT for 'tax planning' purposes.

Even still, take him out as an outlier, and total sales are still 50% higher than the next highest weeks...

Jake3463's picture

Oh look, Cisco is on that list again.