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Weekly Insider Selling To Buying Ratio: 565x

Tyler Durden's picture




 

It has been a while since we refreshed the relentless insider selling rush. So it was good to see there were no surprises in the latest Bloomberg reported S&P 500 insider selling and buying. In the week ended May 6, there was $1.2 million worth of purchases, primarily in PBCT and NDAQ (some insider seems to think there is a possible upside catalyst here, ahem NYSE-deal), with a total of 10 insider purchases in the week. This was offset with a meager 165 insider sales, totalling $650 million, for a selling-to-buying ratio of 565x. The biggest selling occurred in GOOG, Praxair, Waters Corp, Campbell and Equity Residential. And while there are those who claim it is perfectly normal for insiders to cash out promptly without regard for the message sent to other shareholders, even Barrons' noticed the massive spike in selling in recent weeks, noting that any selling to buying ratio over 20 is bearish based on its limited universe of stocks. So, what about 565?

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Full breakdown of insider transactions:

 

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Tue, 05/10/2011 - 12:51 | 1259574 Alex Kintner
Alex Kintner's picture

The rats are jumping ship.

Tue, 05/10/2011 - 13:47 | 1259738 idea_hamster
idea_hamster's picture

Actually, we're the rats and we'll go down with the ship.

It's the captain and the senior crew who are leaving, and in a guilded lifeboat with all the food, all the water and the contents of the ship's safe.

Tue, 05/10/2011 - 14:14 | 1259826 Alex Kintner
Alex Kintner's picture

Shades of the Titanic -- which ended 'not well' too.

Tue, 05/10/2011 - 18:37 | 1260848 Ratscam
Ratscam's picture

thanks TD for the numbers, cant wait for the scheduled crash in all asset classes.

Tue, 05/17/2011 - 17:19 | 1284754 Left Right Wrong
Left Right Wrong's picture

Can anyone direct me where to find this information database?

Tue, 05/10/2011 - 12:53 | 1259578 latizziforchizzi
latizziforchizzi's picture

The only ratio I'm waiting for is 10:1

Tue, 05/10/2011 - 13:56 | 1259760 augie
augie's picture

thats what she said.

 

 

(sorry i couldn't resist)

Tue, 05/10/2011 - 12:54 | 1259581 Newsboy
Newsboy's picture

Holding cash, like PIMCO. What's about to happen?

Tue, 05/10/2011 - 13:07 | 1259633 Xibalba
Xibalba's picture

no matter how many times I see it, I'm amazed at how they can levetate the market on absolutely no volume. 

Tue, 05/10/2011 - 13:42 | 1259686 Texas Gunslinger
Texas Gunslinger's picture

Actually, I think it makes it easier.  

In the absence of real volume and true conviction, the Atari 100's can just ping-pong ever increasing bids against each other with minimal friction.  

You know how to get the highest score in Donkey Kong?  When all the Gorillas leave the room tired and exasperated. 

 

Tue, 05/10/2011 - 13:47 | 1259744 DoChenRollingBearing
DoChenRollingBearing's picture

Got it (at least here) T.G.  Bots vs. bots.

Tue, 05/10/2011 - 13:59 | 1259774 Texas Gunslinger
Texas Gunslinger's picture

Furthermore, corporate buybacks are more influential on stock price than insider buying/selling (in most cases). 2010 was a near record year for corporate buybacks, and, as of March 2011, corporate buybacks were up over 50% from 2010.

So while insider selling tells one story, corporate buybacks tell quite another. 

 

 

Tue, 05/10/2011 - 14:22 | 1259851 gmrpeabody
gmrpeabody's picture

Industry is buying all the crap their own chieftains are selling That's an even scarier scenario.

Tue, 05/10/2011 - 14:31 | 1259885 fuu
fuu's picture

Gave up on the doe eyed innocent guy and now you are savvy investment guy. Guessing there was a shift change at the troll station today.

Wed, 05/11/2011 - 00:53 | 1261852 StychoKiller
StychoKiller's picture

Glad I'm not the only one that noticed this!

Tue, 05/10/2011 - 15:13 | 1260091 Hugh G Rection
Hugh G Rection's picture

Did your coinguy tell you that Dungslinger?

Tue, 05/10/2011 - 15:30 | 1260174 rosiescenario
rosiescenario's picture

...let's see, we'll use the shareholders cash to prop up our stock so we can exercise our options and then sell into the market...

Tue, 05/10/2011 - 14:12 | 1259812 Alex Kintner
Alex Kintner's picture

Front running, clearly makes market manipulation fixing a snap. You can swap share ownership between your downtown and uptown offices faster than any middlemen can intercept the trades. All at no commission.

Tue, 05/10/2011 - 12:59 | 1259582 hugovanderbubble
hugovanderbubble's picture

Me aburro del mercado siempre alcista.

 

Im bored of eternal permabullishment.

 

*

Tyler as u may know much better than me, the Equity Cash vs Futures Ratio is close to lowest levels in the range.

All this market is been driven by Options.....Flight to Quality coming .

 

Regards,

Hugo,

Tue, 05/10/2011 - 13:03 | 1259617 LawsofPhysics
LawsofPhysics's picture

And for those of us with some cash still on the sidelines, precisely what is the "quality" you speak of?

Tue, 05/10/2011 - 14:19 | 1259682 hugovanderbubble
hugovanderbubble's picture

Bearish Beta stocks

Telecoms,

Utilities.

*Long US financials vs EUR financials

 

*Short Commodities .- Using SCO

*Short Oil (till 85-90)

* Long TLT (expecting less 1yr inflation) -

Long TLT/Short DOW

http://stockcharts.com/h-sc/ui?s=TLT%3A%24INDU

* Long Belgian CDS 2,5 and 10yrs

* Long Spanish CDS 5 & 10 yrs

 

Regards,

 http://www.rankia.com/respuestas/759995/images/39238

SP back to 1250-1285 next two months.

*Long USD vs MultiCrosses.

Tue, 05/10/2011 - 14:08 | 1259799 Taku
Taku's picture

Last round, 'quality' = UST

This round, physical gold

Tue, 05/10/2011 - 12:59 | 1259594 PaperBear
PaperBear's picture

The ratio of dollars to silver will be infinity to 1

Got another delivery of physical silver today - ha ha ha

Tue, 05/10/2011 - 12:58 | 1259599 drswhaley
drswhaley's picture

Look like about 20% of S&P 500 stocks are being sold.  No small feat but I guess it's bonus time.

Tue, 05/10/2011 - 12:59 | 1259604 bigwavedave
bigwavedave's picture

sorry but im new. is there any position disclosure on ZH? i can find a model portfolio anywhere in the links. thanks.

Tue, 05/10/2011 - 13:06 | 1259618 Alex Kintner
Alex Kintner's picture

Just from reading comments, I think the typical ZH portfolio is 99.98% physical silver, 0.01% physical gold. Remainder in Bernanke Futures.

Tue, 05/10/2011 - 13:23 | 1259670 bigwavedave
bigwavedave's picture

ah. thanks alex. not a bad portfolio i must say. i would replaced the Bernanke Futures with physical Bernanke (locked up in the woodshed like the gimp). I would perhaps increase the gold position and add an apartment building or 5 in vegas. 

Tue, 05/10/2011 - 14:14 | 1259816 Alex Kintner
Alex Kintner's picture

+1 for "Physical Bernanke" as icky as that may sound. 

Tue, 05/10/2011 - 14:21 | 1259844 earlthepearl
earlthepearl's picture

Vegas is a walking ghost town, no more potable water in the next 5-10 years,

Wed, 05/11/2011 - 05:41 | 1262093 LudwigVon
LudwigVon's picture

Oh please, there is infinite clean water on this planet just like there is infinite energy.

Tue, 05/10/2011 - 13:49 | 1259750 DoChenRollingBearing
DoChenRollingBearing's picture

LOL there Alex!

Tue, 05/10/2011 - 14:36 | 1259915 fuu
fuu's picture

More like:

30% Physical silver

22% stored food/seeds

20% lead/guns

15% stored water/gas

10% farm animals

3% physical gold

Tue, 05/10/2011 - 15:41 | 1260210 gaoptimize
gaoptimize's picture

Yeah, pretty close, but you missed my silver miners (NYSE:SIL) and that some of my physical silver is held by Eric Sprott in a country with a conservative government (NYSE:PSLV).  I plan to realocate when I figure out how to short my mortgage ;) .

Tue, 05/10/2011 - 15:47 | 1260234 BKbroiler
BKbroiler's picture

let's simplify that.  50% gold and 50% lead, and the rest comes your way.

Pirates of the suburbs coming to your town.

Tue, 05/10/2011 - 13:01 | 1259610 carbonmutant
carbonmutant's picture

Exiting before the QE3 delay...?

Tue, 05/10/2011 - 13:04 | 1259611 stickyfingers
stickyfingers's picture

So, what about 565?

That would have to be bullish, wouldn't it?

Tue, 05/10/2011 - 13:05 | 1259624 hugovanderbubble
hugovanderbubble's picture

Completly the opposite, its a typical bearish divergence...

Equity Indexes Up.....Insider sell to buy ratio up..and more with this wild movement....

But who cares, this never drops hardly , till some day happens.¡

Tue, 05/10/2011 - 13:04 | 1259620 BeerGoggles
BeerGoggles's picture

This made no difference over the last 6 months so why should it now?

Tue, 05/10/2011 - 13:06 | 1259630 carbonmutant
carbonmutant's picture

 End of QE2

Tue, 05/10/2011 - 13:09 | 1259629 hugovanderbubble
hugovanderbubble's picture

Since Sept 2010

US has been living thanks QE2 -Pomo ammonition.

Back to reality, US is not strong as markets are telling, but charts are  the charts...

Tue, 05/10/2011 - 13:10 | 1259636 djsmps
djsmps's picture

So, $32 billion in 3-year notes auctioned today. Did we breach the debt ceiling?

Tue, 05/10/2011 - 13:14 | 1259646 magpie
magpie's picture

Whatever one can say about the Bernank/Obamao Ponzi system, it really takes balls of steel to be over thre with the PLA negotiating on Trade while actually being in technical default.

Tue, 05/10/2011 - 13:14 | 1259652 10kby2k
10kby2k's picture

Its all liquidity driven and options are limited due to ZIRP and the Fed. Trying to make sense of a 'non free' market can be hazardous to your  (w)health.

Tue, 05/10/2011 - 13:26 | 1259673 goldm3mb3r
goldm3mb3r's picture

The stock market is a great place to invest - think of all those consumers going out to spend their freshly printed dollars on Western made goods.

Tue, 05/10/2011 - 13:36 | 1259709 gkm
gkm's picture

And here to your left we have one aspect of hyperinflation.  Insiders sell forcing the Bernanke to print more money to buy them up to keep the ponzi going so that insiders are incentivized to print more options to sell to the Bernanke etc etc.

If they could only bring the scheme to the next level, talk of a debt target  ceiling would be irrelevant.

Tue, 05/10/2011 - 14:54 | 1259987 wirtschaftswunder
wirtschaftswunder's picture

How come Sprott's not on the list?

Tue, 05/10/2011 - 15:26 | 1260150 oogs66
oogs66's picture

but they are spending our money like its going out of style via M&A

Tue, 05/10/2011 - 15:48 | 1260237 Smiddywesson
Smiddywesson's picture

Naw, ZH investors hold all sorts of things besides silver and gold.  You forgot bullets, tins of meat, and nylons, so our ladies can look fine on the back of our ride as we tool along through the nuke blasted desert.

Tue, 05/10/2011 - 18:33 | 1260851 caveman
caveman's picture

from where did you source this?

bloomberg or thomson reuters?

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