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Insider Selling/Buying Ratio At 62.3x To Start Off 2010; Insiders Can't Thank The Fed Enough For Inflated Stock Prices

Tyler Durden's picture




 

2010 has started off with a bang. Insiders purchased $4.5 million worth of stock (and yes, this does not include the end year transaction by such individuals as Nelson Peltz who acquired nearly 10 million shares of Legg Mason on the last day of 2009, to validate his recent board seat standstill), in the period from January 4. It should, however, comes as no surprise that in the same period selling did not moderate, and insiders offloaded $281 million in shares (yes, this accounts for the double counting of trades between various ultimately identical corporate entities, which seems to have been missed by some of our peers). Net result: an insider selling to buying of 62x to kick off 2010. And still the quants are chasing momentum ever higher. There is no way this will end in anything but tears.

 

Insider Transactions 1.11 -

Source: FinViz

 

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Mon, 01/11/2010 - 12:33 | 189932 Slewburger
Slewburger's picture

Does the Fed really think they can inflate to entice the dumb money?

Or inflate until the "recovery" actually takes place?

Mon, 01/11/2010 - 13:33 | 189996 Anonymous
Anonymous's picture

People once thought that the Sun circled the Flat Earth...

Mon, 01/11/2010 - 12:35 | 189936 ghostfaceinvestah
ghostfaceinvestah's picture

Is that a helicopter I hear?

Mon, 01/11/2010 - 14:22 | 190059 Big Red
Big Red's picture

About once a week, a dark helicopter arrives, hovers within about lateral 200 feet of the rooftop for anywhere between 10 and 20 seconds, then journeys on, likely towards DC via a line near Camp David, although in "airmiles" I'm not that close at all.

Late summer/fall, I got to see my first UAV (drone) pass almost directly over the house. (Perhaps they're being tested/fab'd at Hagerstown, MD airport???)

Once, by sheer accident/happenstance, in our former residence about 2 years ago, I hustled a forgotten bag of garbage out to the curb in the early morning, only to find my garbage was already picked up-but our neighbors on either side of the street, in both directions, still had theirs outside.

I'm not paranoid, and these are honest observations. Why the heck would I make stuff like this up?

In my other live's here on the web, do I write too much, rail too much (hopefully intelligently once in a while), sign a petition that makes sense, etc.???

Oh, well, to return to the question "Is that a helicopter I hear?", man, have I ever....! (Sorry for hijacking your train of inference, I realize they aren't Ben's over my house...)

Wed, 12/15/2010 - 05:54 | 807412 Karston1234
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This was actually what I was looking for, and I am glad that I finally came here! This for sharing and keep up the good work...
Essay Writing | Coursework Writing | Assignment Writing

Mon, 01/11/2010 - 12:48 | 189954 Gimp
Gimp's picture

And the significance is?  Has'nt this been going on for years?

Mon, 01/11/2010 - 12:56 | 189959 Anonymous
Anonymous's picture

still don't believe in the helicopters ?

Mon, 01/11/2010 - 12:56 | 189960 Anonymous
Anonymous's picture

Happy Days. It's a Fonzie scheme.

Mon, 01/11/2010 - 14:33 | 190096 Anonymous
Anonymous's picture

I think the Fonz could have pulled it off...this is more like a Potsie scheme.

Wed, 12/15/2010 - 05:54 | 807413 Karston1234
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Thanks for sharing...Dissertation Writing | Thesis Writing

Mon, 01/11/2010 - 15:16 | 190153 RockyRacoon
RockyRacoon's picture

Now, THAT is funny!

You made my day....

Mon, 01/11/2010 - 13:23 | 189986 Anonymous
Anonymous's picture

What's the normal insider selling/buying ratio?

Mon, 01/11/2010 - 18:04 | 190346 koaj
koaj's picture

not 62-1

depends on a lot of things but this is way out of whack

Mon, 01/11/2010 - 13:40 | 190003 Anonymous
Anonymous's picture

Could it be this is already a Weimar market? Is it simply the reflection of money printing thus far and QE to infinity given FDIC requires multi billions per month until just a few banks are left and 48 of 52 states are worse than Greece. To beat this market you need to own gold and gols stocks. In Gold We Trust.

Mon, 01/11/2010 - 14:53 | 190123 Anonymous
Anonymous's picture

everybody bitches about the manipulation of the market, the bubble, inflated equities...yet EVERYONE still plays the rigged game. Just goes to show you, you're all hypocrites.

You wanna break the system...STOP FEEDING IT!!!!!

Mon, 01/11/2010 - 23:15 | 190707 ozziindaus
ozziindaus's picture

Yep, I couldn't believe it when I found out Hulk Hogan was NOT the strongest man in the world even after smashing Nikolai Volkov and the Iron Sheik.

Mon, 01/11/2010 - 15:10 | 190139 Hephasteus
Hephasteus's picture

This information is no good. These people use I think it's 10-b5 programs that constantly put their shares up for sale so that they can "dump for real" without it being pegged to any internal news about their own company. It's an insider trading loop hole. The sell to buy ratio is always going to be 20x to 60x. I found Goldman Sachs programs for doing this long time ago but lost the links and research.

Mon, 01/11/2010 - 17:32 | 190310 Anonymous
Anonymous's picture

Out of curiosity, do these numbers include outright stock grants or does anyone track similar numbers that include stock grants?

Many companies no longer require executives to front any money for their stock; they just issue stock grants. This number would seem more meaningful if it considered stock grants.

Mon, 01/11/2010 - 19:11 | 190433 FranSix
FranSix's picture

Its good to point out insider selling outweighs buying, as it has for a long time now, but most insiders -who run the companies- are likely associated with the derivatives trade tied to their companies' cash flow, assets and earnings.  If they're getting out  now in droves, it means their access to wealth is no longer available.  Not that their company is particularily in trouble per se.

Mon, 01/11/2010 - 19:23 | 190450 D.M. Ryan
D.M. Ryan's picture

And yet, there's another statistic that makes for an oddity when put together with the insider buy/sell ratio. The "little guy" isn't participating.

http://www.zerohedge.com/article/weve-never-seen-%E2%80%93-such-huge-rally-and-little-guy-out

Odd that the two groups would be on the same side with respect to this rally.

Mon, 01/11/2010 - 19:38 | 190470 omi
omi's picture

Please stop this crying. You have to trade that market that's in front of you, whether up or down. If the market was going down, you seriously don't think that momentum chasers will not be chasing it down and have some vested interest in keeping the market perpetually up? they want to be out at the end of the day

Mon, 01/11/2010 - 19:39 | 190471 omi
omi's picture

Please stop this crying. You have to trade that market that's in front of you, whether up or down. If the market was going down, you seriously don't think that momentum chasers will not be chasing it down and have some vested interest in keeping the market perpetually up? they want to be out at the end of the day

Tue, 01/12/2010 - 03:10 | 190858 Grand Supercycle
Grand Supercycle's picture

 

DOW/SP500 daily charts continue to show signs of being overbought.

The weekly chart is bullish/neutral:  ie a moderate uptrend.

Keep in mind that trends with longer time frames have more influence over trends with smaller time frames.

The bear market rally from March 2009 will not end until the weekly chart turns down.

The very choppy USD Index daily chart is now neutral and the weekly chart continues to give bullish warnings.

http://www.zerohedge.com/forum/market-outlook-0

Do NOT follow this link or you will be banned from the site!