A Most Remarkable Market: In Week The S&P Hit Record High, Everyone Sold

Tyler Durden's picture

This continues to be truly the most remarkable "market."

Last week, in which the S&P 500 hit new all time highs, BofAML reports that its clients (institutions, hedge funds and private clients) who have sold stocks for all but 2-3 weeks in all of 2016, once again sold $1.9 billion of US stocks, the largest weekly outflow since early June. Net sales were led by institutional clients, which has been true most weeks this year; redemptions from mutual funds amid poor performance is likely one driver here. Private clients were also net sellers (for the fourth week), with sales by this group their largest since early 2014. Hedge funds were small net sellers after buying stocks for the prior seven weeks.

Clients sold stocks across eight of the ten sectors last week, led by sales of Energy stocks as WTI oil fell below $40/bbl for the first time since April.

Maybe it was a surge in buybacks? Nope: "Buybacks by our corporate clients picked up last week, but QTD are tracking at their lowest levels of any comparable period since 2012."

Here is how the buying, pardon selling, by "smart money" looks like both YTD, and since 2008.

Not only did "clients" sell, they sold an almost record amount of energy shares: "Net sales of Energy were the largest since December and the third largest in our data history, led by private clients. Health Care and Financials also saw large outflows last week."

Perhaps the "smart money" finally saw the PE of the energy sector.

 

And the biggest surprise: "Cyclical sectors continue to see bigger outflows than defensive sectors, and Tech has seen the largest outflows quarter-to-date despite reporting better-than-expected results."

From this we can conclude that absolutely everything is now officially upside down: the worst the data, the higher the stocks rise, which in turn leads to even more selling, which result in even higher prices.

Don't try to make any sense of it, just thank the central banks.

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BandGap's picture

Potemkin market.

nibiru's picture

Thanks Obama!

Thanks Janet!

Thanks Hillary!

...

 

Who else is on the list that trashed the US economy?

N0TaREALmerican's picture
N0TaREALmerican (not verified) nibiru Aug 3, 2016 5:06 PM

Everybody that voted Red and Blue Team for (say, oh) the last 50 years?  

Know anybody?

Here2Go's picture
Here2Go (not verified) N0TaREALmerican Aug 3, 2016 5:14 PM

RE-'MARK'-ABLE... There, fixed it. (now it's easier to understand).

Squid-puppets a-go-go's picture

can someone tell me what this conundrum actually means? how can the indexes rise on gross selling? Is it all just to say that their data series excludes purchases of shares from central banks? Or are they saying the price is thoroughly disconnected from puts/calls and is an entirely arbirarily made up number?

WhackoWarner's picture

Not a problem Squid.  I will pour you a tequila shot and we can both get enlightened.

Do you not see the WHY?

 

Do you not see why this is happening?

DeadFred's picture

This is a fraudulent graph because they didn't put in the Central Bank line. Things would have added up if they did BUT the jokers who wrote this article didn't want you to know who bought this week

<or maybe the CBs don't publish their purchases real time, maybe I should consider that...>

Okay maybe the article is legit. I wonder why they never say how much they're buying?

Muppet's picture

Squid, You're right.  There is a buyer for every seller.  Saying stocks sold off, in truth, just means buyers bought them for less.   Money doesn't move to the sidelines or out of the market.  Someone holds every security at all times.   The article ends "Don't try to make sense of it".   This author is simply ignorant.  

 

 

WhackoWarner's picture

Honey you are still assuming some kind of fair play.  Some kind of logic.  and it is fallacy. Smoke and mirrors and a trip down the yellow brick road of theft.

 

Look for sense in this and you will lose.  Not to say you will not lose anyway.

WhackoWarner's picture

Muppet.

 

The author is ignorant?  or are you?  I suggest you think and read more.  I would suggest that you identify the thief that is picking your pocket instead of rolling over and playing fool.

May take a few houra out of your downtime XBoix TV streaming.  Your shopping channel, celebrity watching.  Author is ignorant?  OK.  Maybe the author did not feed you the right instant opinion?

Cause we all know how much trouble it is to think.  Hence your handle  "muppet".

WhackoWarner's picture

It is only HUMP day but I will make an exception.  Decanting some gin and tonic.  This will help.   Give me a bottle and I will return to make sense of this.

 

And if the G&T don't result in the proper spreadsheet I will take a new age bubble bath and smoke some medical.  And if I fail to understand even then?

 

I will turn on Bloomberg and ?

 

trollster's picture
trollster (not verified) Aug 3, 2016 4:54 PM

If everybody's selling, then who's buying?

N0TaREALmerican's picture
N0TaREALmerican (not verified) trollster Aug 3, 2016 4:55 PM

Maybe the dry powder on the sidelines?

Urban Redneck's picture

That would be constrained by the money supply. The sidelines are actually very small, but there are other fields, with other risks where one park their ass. Of course when you hand your "dry powder" to that "financial advisor" who then parks it in some product you never read the prospectus for... there's no guarantee that some of their money tht you loaned them isn't going to a derivative which helps maintain the status quo.

Unless you have physical banknotes under your mattress or bullion in your boat - you have WET powder by definition, since at least the repeal of Glass Steagall.

Muppet's picture

You forgot the /sarc tag.   Theres no such thing.

WhackoWarner's picture

BRAVO.  Standing ovation.  BRAVO.

 

This is an obscure link to information that has been available for years and years...........Bravo.

 

link and link again.

 

http://www.marketskeptics.com/2011/06/the-esf-and-its-history.html

LooseLee's picture

The  only 'buyers' are enemies of the Free World. Make note; when TSHTF these Traitors will be marked for death. It is written...

N0TaREALmerican's picture
N0TaREALmerican (not verified) Aug 3, 2016 4:55 PM

What happens when nobody sells?

Chippewa Partners's picture

I miss the old days. When Ralph DeNunzio ran the show and blow was for sale in NYSE restrooms! Or when tricky Dicky Grasso would come on CNBC and shower viewers with his bullshit of "fair and orderly markets". Are stock prices set at the margin or at the Fed?

N0TaREALmerican's picture
N0TaREALmerican (not verified) Chippewa Partners Aug 3, 2016 5:11 PM

I missed the old daze when "stocks moved on light trading" and most people didn't know or care what that meant.  It was usually noted in passing on the WGN afternoon report,  just before Ed in Traffic Copter 1.

Over to you Ed (Ed beating his chest to mimic a helicopter):  The Ryan is backed-up past the spaghetti bowl...

Savyindallas's picture

Who the fuck is buying? For every sell there is a buyer. 

Here2Go's picture
Here2Go (not verified) Savyindallas Aug 3, 2016 5:15 PM

ever heard of counterfeit joobux (& their magical printing machines)?

 

It's like manna from the sky!

Infield_Fly's picture
Infield_Fly (not verified) Savyindallas Aug 3, 2016 5:48 PM

BOE, SNB, Fed, PBOC, ECB, BOJ

Vlad the Inhaler's picture

One in the same.  They buy to drive up the price, sucker in some folks, and then sell what they've been wanting to get rid of at the now higher price, plus make money on calls.

Baby Eating Dingo22's picture

 

 

left hand sells to right hand and rights sells to left

It's a hand job

Mungo9000's picture

So, if hedgefunds are selling, and retail investors are pulling out of mutual finds, and everybody was proven to be selling for 23 weeks out of 26, and the only people doing the buying seem to be Central Bankers... is it safe to assume we're all fucked?

Infield_Fly's picture
Infield_Fly (not verified) Aug 3, 2016 5:49 PM

See if Yellen is shoving share certs up her fucking cunt again.

PontifexMaximus's picture

I am so happy for the BofAML info, btw, they used to say this already a month ago. Why don't they say and act accordingly, that this can go forever?

Youri Carma's picture

I guess you never know how a cow catches a hare.

dark pools of soros's picture

401KO'ed coming to a muppet near you

IronPyrite's picture

This must have something to do with that unprecedented "Emergency Meeting" that President Obama & Vice President Biden had back in April of this year with Federal Reserve Chiarman Yellen I.e. No matter how bad the true economic picture is, YOU WILL INSTRUCT Your PPT to buy every sell off , Because the Incumbent party always loses the general election if the Stock Market is down the 3 months preceding the election , So much for " The Fed's" independence

pcrs's picture

The state is buying the economy by QE. Scared everyone I to selling. Communism through the back door