TrimTabs

Insider Stock Buying Drops To Lowest Level In Five Years

“The best-informed market participants seem unenthusiastic about U.S. stocks at current prices,” said David Santschi, chief executive officer at TrimTabs.  “Insider buying is running at the slowest pace for October in the past five years.”

Stock Buyback Plans Drop To 5 Year Low

Stock buyback announcements by U.S. companies sank to $115.0 billion in the third quarter, the lowest level in nine quarters. “Buybacks have been trending lower for the past two years, which is a cautionary longer-term signal for U.S. equities,” said Winston Chua, analyst at TrimTabs.  “Along with central bank asset purchases, buybacks have been a key pillar of support for the bull market.”

ETF Inflows Soar To $43 Billion In July, Most Since 2014

According to our friends at TrimTabs, contrary to speculation that "money remains on the sidelines", far from the "most hated rally ever", the month of July saw a near-record $43.0 billion in new cash added to bond, commodity, and equity exchange-traded funds in July, the biggest monthly inflow since December 2014, when these funds hauled in $50.7 billion.

Some Bad And Some Worse News For Stock Buybacks

For those 17-year-old hedge fund managers used to BTFD on hopes corporate buybacks will "have their back" and provide the bid on which momentum-chasing HFT algos will piggyback, we have some bad news and some worse news.

"The Politics Of Fairness Have Created The Economics Of Hopelessness"

"We’re following the European model which is to maintain the status quo: Don’t let competition damage or disrupt existing businesses. The politics of fairness create anti competitiveness...What we really need is the politics of hope: Let’s figure out how to make it easier to start a business."

Quantitative Easing And The Corruption Of Corporate America

Since the turn of this century, debt-financed share buybacks have severely tested the character of those charged with growing publicly-traded U.S. firms. Should she ignore the potential for further QE-financed share buybacks to exact more untold economic damage, it would be akin to intentionally corrupting Corporate America. The time, though, has come for these wayward companies’ banker and enabler, the Fed, to hold the line, no matter how difficult the next inevitable test of their character may prove to be. It’s time for the Fed to defend the entire Union and end a civil war that pits a chosen few against the economic freedom of the many.

Why The Bulls Are Hoping For A Weak Jobs Number

A weaker jobs number may be precisely what the bulls are hoping for now that Fed rate hikes are back again on the horizon. Here is Bloomberg's Mark Cudmore explaining why a match or a beat to expectations may be the worst case scenario for stocks: "Futures markets price only a 35% probability of the Federal Reserve hiking by June. If today’s labor data doesn’t disappoint, that likelihood could easily double within the next two weeks."

The U.S. Added Only 70,000 Jobs In February Based On Withheld Taxes

Two weeks ago we reported that while for most of 2015, tax withholdings rose at a rate of 5% or more from a year ago, on the back of job growth and gains in wages, commissions and other incentive pay, in recent months there has been a substantial dropoff in this key indicator. Today, TrimTabs put an actual jobs number to this particular decline in tax withholdings: according to the research service, the US added only 55,000 to 85,000 jobs in February, less than half of the official estimate.