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Retail Investors Sheared Again As Insider Sales Hit Two Year High

Tyler Durden's picture


Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Insider Sales of Stock Hit 2 Year High as Retail Sheep are Fooled Once Again

For a while there it was looking as if the market might actually make its high and move lower before Wall Street and corporate insiders were able to hand the bag over to the suckers in retail.  It looks like that was just wishful thinking, as new stats show the retail sheep taking stock from the oligarchs at the highs as usual.  I guess the more things change the more they stay the same.  From Bloomberg:

Corporate executives are taking advantage of near-record U.S. stock prices by selling shares in their companies at the fastest pace in two years.


There were about 12 stock-sale announcements over the past three months for every purchase by insiders at Standard & Poor’s 500 Index (SPX) companies, the highest ratio since January 2011, according to data compiled by Bloomberg and Pavilion Global Markets. Whenever the ratio exceeded 11 in the past, the benchmark index declined 5.9 percent on average in the next six months, according to Pavilion, a Montreal-based trading firm.


Confidence in equities from individual investors may soften the blow from insider sales this time, according to Pavilion’s Pierre Lapointe, head of global strategy and research.


The ratio of sales versus purchases by chief executives, directors and senior officers at S&P 500 companies is more than twice the average ratio of 5.4 over the past 10 years, according to data compiled by Bloomberg and Pavilion. In the months after the ratio was last at this level, the benchmark index retreated as much as 19 percent from April to October of 2011.


Executives at 153 companies in the S&P 500 unloaded shares between Feb. 11 and Feb. 15, with announcements of sales outnumbering buys by 17 to 1. The top sale that week was made by Google Chief Executive Officer Larry Page, 39, with a divestment worth more than $65 million.


Still, Lapointe wrote, “insider transactions do not move markets, large inflows do” and stocks should be supported over the short term by individual investors pumping money into equities.


Investors deposited $37 billion into equity funds in January, the most since 2004, after pulling almost $300 billion out of stock funds since the market bottomed, estimates from the Washington-based Investment Company Institute show.

They don’t call ‘em sheeple for nothing.


Full article here.


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Thu, 02/21/2013 - 13:52 | 3263958 Glass Seagull
Glass Seagull's picture



"Excuse me sir/madam, could you please hold this bag for me while I step out to make a phone call?"


Thu, 02/21/2013 - 13:57 | 3263977 Popo
Popo's picture

"Sure, no problem.  ... God this bag smells like shit.   Hey, it's on fire!"

Thu, 02/21/2013 - 14:32 | 3264104 SafelyGraze
SafelyGraze's picture

who you callin sheeple?



Thu, 02/21/2013 - 14:43 | 3264137 GubbermintWorker
GubbermintWorker's picture

I'm with the Government and we'll tend, er, help you!

Thu, 02/21/2013 - 16:10 | 3264501 Doubleguns
Doubleguns's picture

Bleating and bleading. How apropriate as the corrupt appropriate.

Thu, 02/21/2013 - 16:12 | 3264523 BKbroiler
BKbroiler's picture

fuck 'em.  a fool and his money are soon parted.  Someone responsible, sitting on an owned home, with money in the bank and a steady income could give a shit about the stock market.  There's just a shortage of responsible people these days and a surplus of idiots.  Shear on.

Thu, 02/21/2013 - 19:58 | 3265306 Dead Canary
Dead Canary's picture

A fool and his money were lucky they got together in the first place.

Thu, 02/21/2013 - 13:59 | 3263984 Buckaroo Banzai
Buckaroo Banzai's picture

"OK sure"


Opens bag.

"Oh fuck."

Thu, 02/21/2013 - 14:19 | 3264065 El Oregonian
El Oregonian's picture

How long  should I hold the B-A-A-A-A-A-G?

Thu, 02/21/2013 - 14:45 | 3264143 cheesewizz
cheesewizz's picture

Man Oh Man!!! Thats one fine looking sheep babe. Were can I find her?

OK pass the bag, I just lost my lunch....


Thu, 02/21/2013 - 15:25 | 3264277 SheepDog-One
SheepDog-One's picture

'Hand over to retail'....that's where they failed way back in 2008, retail trader for the most part left, and besides everyone is broke so good luck handing the bag to retail it won't EVER happen/

Thu, 02/21/2013 - 17:56 | 3264940 Freddie
Freddie's picture

Sheep watch TV and Hollywood's shit and enjoy being destroyed.  Animal sheep are far more noble that Obummer voters.

Thu, 02/21/2013 - 13:53 | 3263960 ParkAveFlasher
ParkAveFlasher's picture

Tell me about the Muppets, Clarice.

Thu, 02/21/2013 - 13:54 | 3263964 haskelslocal
haskelslocal's picture


You did a great piece a few years back breaking down sellers to buyers.

I believe it reached a ginormous (new word in Websters) 30:1 level.


Thu, 02/21/2013 - 13:56 | 3263973 kengland
kengland's picture

I don't think so. I think it's the same instituitions passing shares around on any given day. They pick up loose pieces here and there, but retail has been AWOL for years. You did say that a few months ago didn't you?

Thu, 02/21/2013 - 14:35 | 3264111 SafelyGraze
SafelyGraze's picture

"the same institutions passing shares around "

also known as "the kind of porn that sec likes to watch"


Thu, 02/21/2013 - 13:58 | 3263978 Motorhead
Motorhead's picture

So what am I missing here?  One article mentions hedge funds have never been more bullish, then this article says that insiders are dumping like mad.  Hmmmm.

Thu, 02/21/2013 - 14:01 | 3263998 buzzsaw99
buzzsaw99's picture

insiders are insiders. hedge funds are hedge funds and often manage dumb money. hmm.

Thu, 02/21/2013 - 14:08 | 3264020 SAT 800
SAT 800's picture

An "Insider" is a reportable group of stock owners by SEC regulation; they are the people who work at the company whose stock was sold. If the managers and Execs.s of ATT&T are selling their stock; they may be in a better position to know what the future earning prospects are than the public; so it's required that these sales are published. Hedge funds are "outsiders"; they just throw darts at the dartboard like everybody else.

Thu, 02/21/2013 - 14:11 | 3264029 Motorhead
Motorhead's picture

I guess then that hedge funds do NOT move the markets, despite what the pundits say.  Hmmm.

Thu, 02/21/2013 - 14:14 | 3264041 buzzsaw99
buzzsaw99's picture

Investors deposited $37 billion into equity funds in January

Thu, 02/21/2013 - 14:18 | 3264056 buzzsaw99
buzzsaw99's picture


Thu, 02/21/2013 - 13:59 | 3263980 Dr. Engali
Dr. Engali's picture

The fact is American's have a gambling problem. Instead of working for a living they hope to hit it big at one of the many casino formats the country has to offer. Just like Vegas didn't build all those nice resorts by losing, the banks didn't build all those fine towers by holding the bag.

Thu, 02/21/2013 - 14:00 | 3263993 francis_sawyer
francis_sawyer's picture

[THEY] must be real saavy traders...

Thu, 02/21/2013 - 14:21 | 3264047 Dr. Engali
Dr. Engali's picture

It's like the lottery... nobody will play the better odds at 1million but you throw a 200 million dollar power ball out there and the sheep will line up at every gas station around the country. When the S&P is at 666 the sheep want out , but set a new high and on-line trading accounts get opened across the country.

Thu, 02/21/2013 - 14:22 | 3264076 jtz5
jtz5's picture

The odds are the same whether the jackpot is 1 million or 500 million.  You are picking random numbers.  More people play when it's higher, so you have a higher chance of splitting the winnings, but the odds of you winning are exactly the same.

Thu, 02/21/2013 - 14:46 | 3264118 Dr. Engali
Dr. Engali's picture

No they are not. You have much better odds at the traditional lottery than you do the power ball.


Odds in winning the lottery:        1: 12,271,512

Odds in winning the Power Ball:   1: 175,711,536

Thu, 02/21/2013 - 14:48 | 3264146 jtz5
jtz5's picture

Only because of the special ball requirement.  If you are playing the traditional lottery, it doesn't matter if the jackpot is 1 million or 100 million...the odds are the same.  If your original comment specified traditional vs. powerball, I would agree.


I didn't see the word traditional in your first post, but now I can see that you were referring to playing 2 different lotteries, not the jackpot size.

Thu, 02/21/2013 - 15:01 | 3264186 Dr. Engali
Dr. Engali's picture

It's like the lottery... nobody will play the better odds at 1million but you throw a 200 million dollar power ball out there....


Where in there didn't I specify the difference?

Thu, 02/21/2013 - 15:12 | 3264213 jtz5
jtz5's picture

"lottery" is a generic term, not a reference to a SPECIFIC state lottery like Michigan Lotto 47.  How did I know by you saying "lottery" that you were referring to a specific lottery and not lotteries in general?  The Powerball is a type of lottery.  I read it as "It's like playing the lottery...nobody will play it until the jackpot reaches 200 million." it that big of a deal that I had you clarify?

Thu, 02/21/2013 - 16:14 | 3264542 Mesquite
Mesquite's picture

Relax..." You are the one doing the criticizing...Best we all take our own inventories...

Thu, 02/21/2013 - 16:23 | 3264593 secret_sam
secret_sam's picture

I don't see any criticism.  The point is that the odds of winning any lottery are not affected by how many people are playing.

This is different than something like poker or bingo.

Thu, 02/21/2013 - 18:08 | 3264973 Dry Drunk
Dry Drunk's picture

You guys know nothing about lotteries. Jackpots cause the smart players/syndicates to come in. Why? Because they are smart.

Thu, 02/21/2013 - 14:17 | 3264050 Oldwood
Oldwood's picture

Gambling is just another redistribution tool much like banking. We have passed the tipping point, well down our way on the slippery slope of people unwilling to work for wealth, for all of the obvious and not so obvious reasons. High taxes make meager returns less and less worth putting labor and capital at risk. Subsidization of non-productive activities combined with high taxes and punative regulations make those who in the past would be considered the most productive amongst us look like the dupes. And as we see, perception rules until reality kicks us in the nuts. I'm wearing a cup.

Thu, 02/21/2013 - 17:57 | 3264944 Freddie
Freddie's picture

A lot of stupid fux gambled on Hope & Change.

Thu, 02/21/2013 - 13:59 | 3263988 astoriajoe
astoriajoe's picture

given the post previous to this, isn't it the hedge funds holding the bag?

Thu, 02/21/2013 - 14:00 | 3263991 DoChenRollingBearing
DoChenRollingBearing's picture

This is not a surprise to me either.  I can hardly wait until I can see who sold this week.  BARRON'S!  Are you going to finally get an edition out to our town?

Thu, 02/21/2013 - 14:02 | 3263999 SheepDog-One
SheepDog-One's picture


Thu, 02/21/2013 - 14:03 | 3264000 Republi-Ken
Republi-Ken's picture


Hope that $37 BILLION invested in JANUARY

by the SHEEP...

Were ALL REPUBLICAN SHEEP...aka Top 2% Sheep.

Thu, 02/21/2013 - 14:08 | 3264014 RSBriggs
RSBriggs's picture

Sorry - try again.   Majority of billionaires are well-connected liberals.  Soros comes to mind.  Fuckberg, Gates, etc.   Ditto most multi-millionaires.  Hollywood in general, etc.   Something like 90% of the top 2% are liberals, and they don't vote Republican.

Thu, 02/21/2013 - 14:21 | 3264070 walküre
walküre's picture

Fuckberg and Gates are nett sellers of equities. They're the insiders with access to unlimited corporate paper and they will sell to anyone, at any price as long as anyone is still willing to buy a "share" of their companies. There's always plenty more where that last batch came from.

Thu, 02/21/2013 - 14:50 | 3264129 gmrpeabody
gmrpeabody's picture

"Were ALL REPUBLICAN SHEEP...aka Top 2% Sheep"

Classic example of the uninformed..., running off at the mouth.

Thu, 02/21/2013 - 18:07 | 3264970 Freddie
Freddie's picture

By and large, most billionaires get that wealthy because they hitch their wagon to the govt.   Oracle bills the govt insane amounts and it is never questioned.  Buffett has endless sweetheart deals.  His old man was a senator. 


The old saying "behind every great man is a woman."  Behind every billioanire is a corrupt politician.


Thu, 02/21/2013 - 14:04 | 3264005 fonzannoon
fonzannoon's picture

The dow is down 50 pts after a 100 point drop and we are all running around with our hair on fire. Until otherwise noted the sheep bought themselves a nice little dip.

Thu, 02/21/2013 - 14:58 | 3264179 Caracalla
Caracalla's picture

No more QE means the dip will just keep getting larger each day.  BTFD died yesterday with the Fed minutes

Thu, 02/21/2013 - 15:02 | 3264192 Melson Nandela
Melson Nandela's picture

Please look at the 2 day the chart on the real place where the hedgies play, the /TF and /ES. Real money and real margin calls

Thu, 02/21/2013 - 14:07 | 3264018 Oldwood
Oldwood's picture

What do you think they are seeing that would make them want to cash out now? Surely they don't believe that stock prices are over priced or that all of the governments talk of steady growth and recovery are a lie! If that were true then we would all be doomed! Oh No!

Thu, 02/21/2013 - 14:12 | 3264034 Winston of Oceania
Winston of Oceania's picture

Buying the PM dip?

Thu, 02/21/2013 - 14:52 | 3264165 gmrpeabody
gmrpeabody's picture

A little here..., a little there. Adding to my positions as I believe the banks are.

Thu, 02/21/2013 - 14:08 | 3264023 RichardENixon
RichardENixon's picture

This is good news! Things are going exactly as planned!

Thu, 02/21/2013 - 14:12 | 3264030 l1b3rty
l1b3rty's picture

Doesn't seem to matter where you are, you're getting screwed unless you're long government corruption and corporate greed...

or in BITCOIN...

Thu, 02/21/2013 - 14:12 | 3264031 Silver Garbage Man
Silver Garbage Man's picture

This garbage man ain't gona get fleeced. Just wait I'll this ponzi will be one for the ages. Those of us with hard assets will come out of this far better off than the sheeple and a lot of the "smart money"!

Thu, 02/21/2013 - 14:40 | 3264036 Monedas
Monedas's picture

Governments are EXEMPT from the insider trading rules they selectively impose !   Inside trading should be legal for all .... investment advisors would earn their fees .... keeping their clients informed !  Just like drugs .... you can't eliminate it .... only the mafia and government profit from these prohibitions .... that are impossible to enforce .... and have no other purpose but create a monopoly for these bad guys !  There is no malady that cannot be irradicated .... by the rigorous application of the purest Capitalism .... including AIDS and cancer ! If corporate officers misbehave .... it is the duty of the shareholders to hold them accountable !

Thu, 02/21/2013 - 14:15 | 3264044 Silver Garbage Man
Silver Garbage Man's picture

This garbage man ain't gona get fleeced. Just wait I'll this ponzi will be one for the ages. Those of us with hard assets will come out of this far better off than the sheeple and a lot of the "smart money"!

Thu, 02/21/2013 - 14:15 | 3264046 reader2010
reader2010's picture

consumers of financial markets got undollared again?

Thu, 02/21/2013 - 14:16 | 3264048 fonzannoon
fonzannoon's picture

show me a nice 10% correction in stawks while the 10yr heads north of 2.5% at the same time. Until then this is just a blip on the screen.

Thu, 02/21/2013 - 14:18 | 3264057 PUD
PUD's picture

Williams: QE providing much needed boost to growth



Thu, 02/21/2013 - 14:26 | 3264085 Cortez
Cortez's picture

What a cute bag!!  It even has a picture of a mouse on it!  I'm gonna hang on to this!

Thu, 02/21/2013 - 14:27 | 3264088 madcows
madcows's picture

Its time to bolt from Animal Farm

Thu, 02/21/2013 - 14:27 | 3264090 Joe Davola
Joe Davola's picture

Time to increase the share buybacks!

Thu, 02/21/2013 - 14:32 | 3264103 CheapBastard
CheapBastard's picture

I took a big dump last week...the whole thing smelled fishy esp with Walmart's "total disaster" statement.

I think MSM may be off on this on. The economy is not doing as well as they say.

Thu, 02/21/2013 - 14:37 | 3264123 Downtoolong
Downtoolong's picture

Look at Facebook Insiders and Senior Management. They tell everyone their stock is cheap at $38 before the IPO, then happily sell ever after at numbers far below that; in some cases sub $20. Hypocritical much? When was the last time you sold something for substantially less than you thought or said it was worth. But it’s good for the children.

And aren’t you just dying to know who was pumping the shit off the floor and driving the stock back up to $33 before it started face planting again? What a scam. What a beautiful scam indeed.


Thu, 02/21/2013 - 14:43 | 3264136 orangegeek
orangegeek's picture

It's to be expected.  Insiders usually sell at tops.

Thu, 02/21/2013 - 14:48 | 3264149 Edward Fiatski
Edward Fiatski's picture

"Confidence in equities from individual investors may soften the blow from insider sales this time"


"Executives at 153 companies in the S&P 500 unloaded shares between Feb. 11 and Feb. 15, with announcements of sales outnumbering buys by 17 to 1. The top sale that week was made by Google Chief Executive Officer Larry Page, 39, with a divestment worth more than $65 million." - Now here's a smart man.

Thu, 02/21/2013 - 14:57 | 3264173 q99x2
q99x2's picture

But that ugly bald Blankeind told doctor bone us to do it.

Thu, 02/21/2013 - 15:06 | 3264205 Hacksaw
Hacksaw's picture

I have one question, do you guys get paid for the BS posts by the hour or are you on piece work?

Thu, 02/21/2013 - 15:22 | 3264261 NoWayJose
NoWayJose's picture

The reason sheep are used as a metaphor is that they walk in single file, one behind the other.  Unless you are the leader, the view never really changes...

Thu, 02/21/2013 - 16:35 | 3264646 Law97
Law97's picture

Almost green now for the day as almost all of the days losses erased in the last half hour (on what news again?).  Sheeple seem to be doing just fine, thank you.

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