This page has been archived and commenting is disabled.

Weekly Insider Buying And Selling: $2.8 Million In Purchases; $1 Billion In Sales

Tyler Durden's picture




 

There was once a rule of thumb that insider selling over 20x in any given period is bearish. We would be overly generous and say bearish is 30x, no 50x, oh why not: 100x more sellers than buyers. So what does a ratio of 351.3x sellers to buyers indicate? Because this according to Bloomberg is last week's insider activity in S&P500 names in the past week. Indeed, in the past week insiders purchased a total of $2.75 million notional in corporate stock, across 13 different companies, with the bulk focusing on Mead Johnson and Comcast. This was offset by a whopping $1 billion + in insider sales, as corporate officers couldn't wait to dump MetroPCS ($151 million), Sara Lee ($133 million), and, surprise, Microsoft ($127 million). Compare this to last week's insider purchases of just over $1 million and sales of $650 million and make your own conclusions.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 05/16/2011 - 16:33 | 1280527 I Am The Unknow...
I Am The Unknown Comic's picture

Transfer of wealth bitchez! (I think I'm the first post)

-my pension fund is on a buying binge I'm sure, buying crap from the insiders....gee thanks a lot

Mon, 05/16/2011 - 16:34 | 1280532 gorillaonyourback
gorillaonyourback's picture

its been going on for a while now is retail buying of pension and hedge funds?

 

Mon, 05/16/2011 - 16:34 | 1280533 bob_dabolina
bob_dabolina's picture

I guess insiders were conflicted on Comcast as it's on both lists.

Mon, 05/16/2011 - 23:35 | 1281817 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

If I am reading this correctly, and maybe I am not...insiders bought 25,000 shares and sold about 420?  Not sure if that indicates confliction...

Mon, 05/16/2011 - 16:35 | 1280535 gorillaonyourback
gorillaonyourback's picture

its been going on for a while now, is retail buying or pension and hedge funds?

 

Mon, 05/16/2011 - 16:37 | 1280546 bob_dabolina
bob_dabolina's picture

The Ben Bernank through primary dealers and Citadel.

Mon, 05/16/2011 - 16:33 | 1280539 gorillaonyourback
gorillaonyourback's picture

its been going on for a while now, is retail buying or pension and hedge funds?

 

Mon, 05/16/2011 - 16:36 | 1280543 Clueless Economist
Clueless Economist's picture

My conclusion is that we need to spend $5 Trillion for a stimulus  that would save 10 million shovel-ready jobs.

Mon, 05/16/2011 - 16:36 | 1280554 bob_dabolina
bob_dabolina's picture

$500,000 per job sounds about right inline with government expectations.

Mon, 05/16/2011 - 16:41 | 1280565 RichardENixon
RichardENixon's picture

I agree with you Mr. Krugman, except that I think we need to save spoon-ready jobs. We have gone beyond the point where saving shovel-ready jobs will help.

Mon, 05/16/2011 - 16:51 | 1280617 Sophist Economicus
Sophist Economicus's picture

Ha!  Your old friend Milton I believe, Richard...

Mon, 05/16/2011 - 16:57 | 1280628 RichardENixon
RichardENixon's picture

Yes. Ironic that he was in India when he made that comment, no?

Mon, 05/16/2011 - 17:00 | 1280644 Sophist Economicus
Sophist Economicus's picture

Sadly, yes!

Mon, 05/16/2011 - 16:37 | 1280548 Gubbmint Cheese
Gubbmint Cheese's picture

instead of BtFD let's follow DSK's favorite strategy and play "just the tip"

Mon, 05/16/2011 - 16:35 | 1280553 filletandrelease
filletandrelease's picture

Was this a seasonally adjusted number or not?

Mon, 05/16/2011 - 16:45 | 1280587 speconomist
speconomist's picture

Muahaha, best post of the day!

Mon, 05/16/2011 - 16:41 | 1280566 Gubbmint Cheese
Gubbmint Cheese's picture

double post -

Mon, 05/16/2011 - 16:40 | 1280570 ivars
Tue, 05/17/2011 - 00:01 | 1281876 suldog
suldog's picture

Why are you showing us this etch-a-sketch market chart, void of any detail or explanation?

Mon, 05/16/2011 - 16:43 | 1280571 oogs66
oogs66's picture

But these same guys pay 40% premiums to acquire other companies and boost their own paychecks

Mon, 05/16/2011 - 16:44 | 1280574 speconomist
speconomist's picture

Who are these so-called insiders?

And... why do we care so much about what they do? Do they have big pockets to drag the markets?

Mon, 05/16/2011 - 18:52 | 1280953 XPolemic
XPolemic's picture

Who are these so-called insiders?

People who work for the companies they sold shares in.

And... why do we care so much about what they do?

Because they know the real position their company is in, vis'a'vis sales, the economy, spending trends etc.

Do they have big pockets to drag the markets?

Not really, but when the companies executives vote against their own company (by selling the shares), it indicates that they think their future prospects are shit, so they are cashing in now to tie them over the coming ... storm.

Wed, 05/25/2011 - 04:39 | 1308181 speconomist
speconomist's picture

Thanks a lot, had no idea about all that.

Mon, 05/16/2011 - 16:41 | 1280577 treemagnet
treemagnet's picture

Same shit, different day.  I can't tell if this is the guy standing up in a canoe or everybody moving to one side of the ship.

Mon, 05/16/2011 - 16:45 | 1280586 Bazooka
Bazooka's picture

Silver and Gold are no more than another pair of equities; it rose with equities and will fall hard with equities. The ponzi unravels in lightening speed and gold is very heavy. If Gold and Silver were safe havens, it would have risen during the past weeks while equities fell, rather this never happened since gold and silver fell with equities.

We are close....just a few days...until we approach and fall off the cliff; ponzi unraveling.

Disclosure: Long FAZ, VXX, UUP, Short S&P 3x

Mon, 05/16/2011 - 16:51 | 1280608 azengrcat
azengrcat's picture

How dare you speak ill of the precious!

Mon, 05/16/2011 - 16:50 | 1280612 Franken_Stein
Franken_Stein's picture

 

If gold was so worthless as you say, central banks wouldn't have it on their balance sheet and wouldn't increasingly buy it.

 

Mon, 05/16/2011 - 16:54 | 1280633 Sophist Economicus
Sophist Economicus's picture

If Gold and Silver were safe havens, it would have risen during the past weeks while equities fell, rather this never happened since gold and silver fell with equities

 

Ahh, for every seller a buyer.   The question is, who was selling and who was buying....

Mon, 05/16/2011 - 17:51 | 1280820 GetZeeGold
GetZeeGold's picture

 

Ahh, for every seller a buyer.   The question is, who was selling and who was buying....

 

Insiders selling......Fed buying with QE funds.

 

 

Tue, 05/17/2011 - 02:21 | 1282135 longorshort
longorshort's picture

What are you using as your indicators and why are you not using futures to track the indexes closer when they can offer less or more margin by choice, unless your playing the decay somehow?  IE ES or Nasdaq bubble?

Mon, 05/16/2011 - 16:49 | 1280602 Franken_Stein
Franken_Stein's picture

 

I've watched  some videos on youtube about that Denver Airport underground facility and the rather strange mural paintings there.

Jesse Ventura also reported on it.

What do you personally think about it ?

 

Mon, 05/16/2011 - 16:59 | 1280646 SMG
SMG's picture

Would be one place to visit with torches, pitchforks, and an angry mob if there were a complete collapse in the near future.

Mon, 05/16/2011 - 17:10 | 1280686 john39
john39's picture

the battle that you see playing out in the world economy is a very very old one.  The story is told in symbols most often, and the meanings of the symbols are kept secret from the masses.  You see these symbols everywhere, on the dollar, in corporate logos...  regardless of whether you believe it, those in power do.  This is not about money, money is a means to an end.  its all about power.

Mon, 05/16/2011 - 17:41 | 1280799 Keri at Bankste...
Keri at Bankster Report's picture

It is a very wierd place, indeed, even without the murals.  The murals make it even more bizarre.  There's also now a huge "Blucifier" horse outside of the terminal, complete with death-ray laser red eyes that glow at night.  Here's a daytime shot:

http://stuckattheairport.com/wp-content/uploads/2009/03/dia-mustang.jpg

I have seen it myself: it is hideous.  Something that is interesting is that one of the murals that was previously taken down has (as of the last time I was there) been put back up.  It is this one with the dead "Nazi Skeletor."

Mon, 05/16/2011 - 19:26 | 1281028 DosZap
DosZap's picture

Satanic looking POS.

Mon, 05/16/2011 - 16:59 | 1280639 Bazooka
Bazooka's picture

Government (central banks) are the worst timers of sell or buy of precious metals.

Look at England...they sold their gold at lows and now buying at the highs.

It's called Herd Mentality.

Silver has completed wave 1 down, completed wave 2 retrace last week and this week will be wave 3 down at minor degree...leading down to $29 or $27. 

 

Mon, 05/16/2011 - 17:02 | 1280667 wirtschaftswunder
wirtschaftswunder's picture

$24

Tue, 05/17/2011 - 01:34 | 1282069 Hephasteus
Hephasteus's picture

Oh noes it's hank paulson and timmay clones.

Mon, 05/16/2011 - 17:13 | 1280689 Sophist Economicus
Sophist Economicus's picture

We have a Prechterian amongst us.   It does look that way in the short-term, but again, one never knows.    Elliott waves have had many busted predictions during the last 12 months

But your comment about central banks leads me to believe that you believe that 'cash' = paper fiat in hand, will be king for the forseeable (5+ years) future.       This is where I think Elliotwave thinking fails.   Deflation won't be allowed IMO, and hence the PM hedge.   Wave analysis doesn't have a fibonacci metric for the stupidity of politicans - especially when the energy required to issue trillions of fiat credit is less that a 100 watt bulb.

Mon, 05/16/2011 - 19:34 | 1281054 DosZap
DosZap's picture

Ah, yes, the U.K., ONE idiot sold it all..............wonder who his instructors were?.$280???

Does this mean wait a few weeks and buy gold physical at $900.00, and Slvr @ $12.35??.

As the world burns?

Mon, 05/16/2011 - 16:58 | 1280652 Bazooka
Bazooka's picture

Eric Sprott will quietly slick back into the shades for his undying bullishness will end in screams of agonies of those who herded with him. Social mood is shifting down...we're almost there to complet the turn in mood trend from positive to negative...just days to go before equities fall off the cliff.

Mon, 05/16/2011 - 17:04 | 1280678 wirtschaftswunder
wirtschaftswunder's picture

Sprott's massive insider sales never reflected on this list presumably because his shares were ETFs. It's preposterous.

Mon, 05/16/2011 - 17:24 | 1280729 ISEEIT
ISEEIT's picture

Remember the 'timeline'?

Well, I'd say that is good. Tired of getting faked out and covering your shorts? Me too.

Patience as a virtue will be affirmed.

My only regret is that I don't go golden untill the top has already fallen 10% from it's false acsent. I went bear to soon. I knew it too, but as has been so eloquently exposed, It's down from here. I personally believe that the 'matrix' has been breached. Enough of us have accepted that the false construct has failed. This lie ain't gunna fly. Just my opinion folks.
Mon, 05/16/2011 - 17:26 | 1280751 dbTX
dbTX's picture

Little timmy is clearly grasping for straws; it's just a matter of time now.

Mon, 05/16/2011 - 17:34 | 1280769 dbTX
dbTX's picture

Sorry meant to post this under:

Treasury Confirms Debt Ceiling To Be Breached Today: Will Tap Pension Funds

 

Mon, 05/16/2011 - 18:37 | 1280926 whoopsing
whoopsing's picture

...Running out the door with nary the decency of pulling the fire alarm of the burning theater

Mon, 05/16/2011 - 19:01 | 1280976 poor fella
poor fella's picture

But.... but, wait... I don't understand..

Goldman (or was it JPM - they're all the F'n same) was bullish this morning on Sara Lee! I guess in 'front running with the insider's'-years that's 7 months of bullishness?

Mon, 05/16/2011 - 20:45 | 1281238 Yen Cross
Yen Cross's picture

I'm going to disrupt your thoughts. My first mark (clmay # (94.65)

Mon, 05/16/2011 - 20:50 | 1281247 Yen Cross
Yen Cross's picture

Yes usd/jpy broke the trend line. Next mark the 81.35 level. It will blow that one out.

Tue, 05/17/2011 - 03:29 | 1282178 Breaker
Breaker's picture

Everything has been bearish for a long time, imho, except the market.

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