The Great(est Fool) Rotation: Who's Buying, And Who's Selling?

Tyler Durden's picture

We could yarn on for hundreds of words discussing the ins and outs of falling volumes and record-er highs in US equity markets as Treasury bond yields collapse, macro- and micro-fundamental data slumps, and the total nonsense with regard to 'cash on the balance sheets' when it is all levered to the max. But when it comes to showing just who is buying the hope... and who is selling the hype, the following chart from BofAML sums it all up... institutional clients sold the most since January and the 4th most on record in the last week as retail clients continued their buying streak.


Institutional clients are dumping equities off to retail clients... thank you very much...


Last week, during which the S&P 500 was down 0.1%, BofAML clients were net sellers of $1.5bn of US stocks following a week of net buying.

Net sales were chiefly due to institutional clients, who have now sold stocks for the last five consecutive weeks and are the biggest net sellers year-to-date. Net sales by this group last week were their largest since January and the fourth-largest in our data history (since 2008).

Hedge funds were net buyers for the fourth consecutive week, and private clients also continued their net buying streak.


Source: BofAML

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newsguy68's picture

Convicted Hacker “Weev” To Launch New Hedge Fund To Bring Down U.S. Banks

wee-weed up's picture

The only thing to remember...

Is that the big banksters are doing exactly the opposite...

Of what they are telling their customers to do!

Soul Glow's picture

Is that why Goldman Sachs refers to their clients as muppets?

BeanusCountus's picture

Wish I could say this reinforces my belief. But "institutional" investors are no more likely to know more than anyone else. I'll stick with my own gut feeling as a "retail" investor and keep selling 10% of my holdings with each new all time intraday high. Only two tranches left. We'll see how it goes.

Soul Glow's picture

Institutions have the same analysts that hedge funds have.  It's an even playing field unless you have the Treasury Sec on speed dial.

SoDamnMad's picture

Correction:  He has YOU on his speed dial.

Four chan's picture

the banks own this market with the zirp cash they got for their toxic mbs which ultimately

the fed is going to stick the us taxpayer with. what is it now four trillion and counting fast?

Ham-bone's picture

25% of total income toward rent is considered a normal and historic portion...

consdier...the bottom 40% of US households pay a minimum of 41% of their after tax income on rent/utilities.

Average rent in US = $9,192/yr; multiply 20% to rent for utilities, etc. (average total cost of rent/utilities = $11,030) Average income for 2nd quintile (40%-21% of US households) $29,700 and take off 10% for SS, medicare, sales taxes, etc. assuming this set pays little to no Federal / state / property taxes (40% household income = $26,700) .

Sustainable???  The stuff of bull markets???

Also consider the amount of SS, welfare, disability, section 8, etc. neccessary for those in the bottom 20% making average of $11,500 household income???

Soul Glow's picture

The consumer is tapped out and government spending minds the gap.  What else is new?

Rubbish's picture

Did I miss Tyler bringing up Morgan Stanleys call of $1138 gold?


What was the consensus here? Will they be able to drive it down there?


Inquiring Gold Bitchez want to know.

Soul Glow's picture

I for one admire their pompous actions - in the way we admire Ghangis Kahn, Alexander the Great, and Napolean - when it comes to shelving bonds at all time highs (vs yield), bringing equity back from the dead, and maintaining low prices in precious metals.  If only they could get oil down below $80/b, then maybe, maybe I would say they won.


BeanusCountus's picture

Right on the money in my book. And not just the "average" consumer. If the household brings in $100k, much higher than the "average", there is nothing left after normal expenses. Can't see how this "recovery" can continue like the media blabs every day. Would short this market but dont have the guts to fight the crazy up, up, up that is coming from "somewhere". America as a whole is broke.

Battlecom1's picture

If you have 100k household, and you cannot meet your "normal" expenses comfortably, I suggest you review what is considered "normal" in your life.  Food for thought.

AldousHuxley's picture

In San Francisco, tenured bus driver makes $90k/year....

no, 100k will not meet "normal" expenses for a family of four when the bottom feeders are inflating cost of daily necessities including housing and food.


25% federal tax

- 9% state tax

- 9% FICA old people tax

- 9% sales tax

===50% goes to taxes

$50k left 

- $20k rent for 1 bedroom

$30k left

- $6k for food

$24k left

- $5000/year healthcare premiums+copays/coinsurance for a healthy family routine checkups

$19k left

- $3k for a car or public transit to get to work

$16k left

- $12k for child care of 1 kid if your wife works so that she can keep her job

$4k left

- $3k for student loans for good 10 years

- $1k for houshold stuff like tooth paste, bedding, clothing

$0 left


no money for retirement, or savings to put down as downpayment, or a replacement car without a loan, or saving for kid's college (which should have been included in taxes, but in US you get this 529 "tax exempt" tax to get your kid's higher education)


This is not normal.


Now you can always say, go move, but then you will not be able to get a job making $100k, but more like $60k and minimal expenses are going to be similar.

Food for thought.


inflation adjusted wage of $100k should be $180k now. so $200k is the new $100k where you get a little more breathing room....but not that much because extra $100k gets taxed 50% and you only have $50k left....than $20k in retirement, $20k in kid's college fund, you have $10k of play fun money which might need to go into emergency fund in case you get laid off during your 30 year career.

eclectic syncretist's picture

The low volume broadening pattern forming on the major indices is a classic warning sign too.  While the Fed may call it tapering, what it really is is tightening, and institutional investors might just be smart enough to know the difference.

eclectic syncretist's picture

The low volume broadening pattern forming on the major indices is a classic warning sign too.  While the Fed may call it tapering, what it really is is tightening, and institutional investors might just be smart enough to know the difference.

SAT 800's picture

Perfect. A Wiley Coyote retail citizens market; my fave. doomed; doomed, I say !

furgheddubouddit's picture

Silly sheeple.

Being led straight into the slaughterhouse by the shepherds at CNBC.

Oh well, what's that saying; 'if you're gonna be stupid, you gotta be tough'.

Mr Pink's picture

Silly sheeple.

Being led straight into another 30% return in the 401k

If they were smart they would bet the farm on silver like me!

old naughty's picture

i am silly, not smart...but I'd bet anything but the farm.

rsnoble's picture

Not sure if you know...........but regarding Wiley Coyote.........ACME is actually owned by Roadrunner Productions. LOL.

Grande Tetons's picture

That gap between retail and institutional looks like a pair of shears.


 Bend over....hold still. These shears do not hurt...for now.

transaccountin's picture

  so for past 3 years everyone was a net seller of assets yet they go up? mmmmk

Osmium's picture

The Line for FED purchases is not on the chart.

LawsofPhysics's picture

Please the Fed would never do that, just like they "would never directly monetize the debt"...



I Write Code's picture

Also big share repurchases - which are largely fed money finding a home.

RacerX's picture

Invisible Hand == Invisible Line

pomlad5's picture

FED line is on the chart, their money is taxpayers money, retail line is on the chart...

CrashisOptimistic's picture

The problem with articles like this that ask who is buyinga and who is selling . . . .

Is that no one is buying and no one is selling.

There are no people involved.  It's just HFT engines.

wee-weed up's picture



The Muppet Show!


Starring Miss Piggy Yellen!

Charles Nelson Reilly's picture

It's time to get out of equities
It's time to short the market
It's time to meet the Criminals who will be stealing your money tonight

Dr. Engali's picture

Same as it ever was.

Xibalba's picture

where is retail getting all their I mean money? 

assistedliving's picture

The firewall working perfectly i see

LawsofPhysics's picture

Okay.  So what are the institutional types buying?  many are mandated to buy certain percentages of certain investments.


Do tell..

NidStyles's picture

Looks like they are buying shorts and HFT equpment to me. 

Hindenburg...Oh Man's picture

we keep hearing this but the market keeps going up.

Kaiser Sousa's picture

retail investors?????

so, "broke as a fucking joke" mom, pops and general muppets r in these Fraud Markets buying at the all time highs.....

yeah, right......

NDXTrader's picture

This just means...CASH ON THE SIDELINES!

SAT 800's picture

LOL. it means "correction coming soon".

gdiamond22's picture

The Rotation is out of momo and into large cap - 2200 SPX by year end.

zipit's picture

Here comes the ratail investor, finally.  Market peak in 3, 2, 1...

Goldenballz's picture

Institutions are consolidating, mom and pop investors buying... should we buy after the correction?

CHX's picture

So sad. Retail will get burnt really good this time IMHO. The ultimate bagholders, buying the FATH. Rinse, wash, repeat, works like a charm every 7-8 years or so it seems.

TheSecondLaw's picture

Lambs to the slaughter.