In Past Week Americans Pull The Most Money From Stock Market Farce Since US Downgrade, Despite Market Surge

Tyler Durden's picture

As if we needed another confirmation that the sad joke of a market has now succeeded in driving virtually everyone out courtesy of precisely the kind of bullshit we saw in the last 30 minutes of trading today, here comes ICI with the latest weekly fund flow data. It will not surprise anyone that in the week in which the S&P rose by a whopping 8 points on absolutely nothing but more lies, rumors and innuendo, US retail investors pulled a whopping $6.7 billion from domestic equity funds: the most since the week after US downgrade when a near record $23 billion was withdrawn. Only unlike then when the market bombed, this time it simply kept rising, and rising, and rising. In other words, every ES point higher serves no other purpose than to provide an even more attractive point for the bulk of that now extinct class known as investors to call it a day, and pull their cash out of this unprecedented shitshow that central planning has converted the market into. And for those keeping score, a total of $123 billion has now been pulled from stocks in 2011, well over the $98 billion withdrawn in 2010.

There's nobody left: just the occasional robot.

SkyNet has won.

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redpill's picture

Know when to walk away, know when to run...

economics1996's picture

You know the shit is going to hit the fan when the world is waiting on the agreement of a group of socialist, fascist, Keynesian, retards.

Learn how to hunt fools.

Mr Lennon Hendrix's picture

The President's Working Group must own half of the equitie market.

billhilly's picture

Damn, being short in this market feels like I just walked through an automatic car wash.

Mr Lennon Hendrix's picture

Long straddle and play the volatility from both sides

Ratscam's picture

trade a strip straddle if you,re bearish
buy 1 ATM june 12 call option and at the same time
buy 2 ATM june 12 put option

Hedge Fund of One's picture

... and trade a smaller ratio of short options against them to protect against time decay.

Stares straight ahead's picture

You need to stick that hog a little lower "hunter".

You lunged him to death.

max2205's picture

Shitshow. Lol

When everyone is in money markets, that's when the real shitshow starts because money markets are gonna blow up first.

King_of_simpletons's picture

And that is when the sheep will wake up and become "freedom fighters". Real pitch forks, chaos and such.

Bobbyrib's picture

Why does your video show people who have no idea what to do with the hog once they catch one?

Stares straight ahead's picture

In hindsight, I think it was used as an instance in which people need to learn how to hunt.  Not as an example of his hunting prowess. 

JLee2027's picture

Bank run is ON!

SheepleLOVEcheddarbaybiscuits's picture

if 95% of retail investors are wrong, this means markets are going higher purely from a contrarian perspective

Rainman's picture

Retail investor can't afford to lose any mo fiat.

Core Logic is out with the state-by-state housing value change for the past 12 months, chart via Dr.Bubble . OUCH !

fonzanoon's picture

So is this not totally bullish? It seems to make it much easier to manipulate it up if there is nobody left.

Divided States of America's picture

I have done my part, told my folks to dump half of their mutual fund holdings....and to dump the other half if Santa and his 'green' nosed reindeers show up this xmas.

fonestar's picture

I do my part too by visiting the fine momos on CNBC chat and reminding them that even the 2 watt bulbs in mutual funds are brighter than they are and got the hell out.

Atomizer's picture

Going long on the Bank of Sealy.

Savyindallas's picture

how does the market melt up if everone is withdrawing?  Who is buying? 

economics1996's picture

David Corzine got some GS $$$$$$.

dracos_ghost's picture

401(k)s and they won't know until after the New Year where a unceremonious dump will follow.

Shizzmoney's picture

I am SO glad I didn't sign up for my employer's plan (cheap fuckers dont match anyways; however, I had to OPT OUT of it - what a racket).

The guys who are pulling their cash out have the smart people working for them.

UP Forester's picture

I did, and after I figured out the racket, I stopped contributing, did the max loans (50%) twice, buying PMs.

Fuck 'em.

HungrySeagull's picture

We got out of ours.


The Board met and made new policity effective immediately on 401k. ANy employee holding 5K or less can cash out immediately while any others above 5K is converted into a Annuity payable at 62.


One annuity was good. But have thought about using Wentworth or some other service to pry the money loose lump sum and screw the remaining 5 years of payouts...

Ned Zeppelin's picture

I hear you but you have to worry about the ability of the insurance company to pay out the annuity at age 62. Really worry.  An annuity is an unsecured promise to pay (albeit "regulated"), not unlike a credit default swap with no collateral.

dracos_ghost's picture

Great explanation. One problem is that the "regulated" part is on shaky ground too. Just search PBGC and pension short falls. Just because they send you a quarterly statement, doesn't mean the money is there.

That annuity trick is not legal. Fight back. They have fiduciary responsibilities to provide multiple options(see ERISA). It's just a way to kick the can down the road and avoid a 401k "bank run". No different than insurance companies selling hurricane insurance before a storm and then declaring bankruptcy after the event.

These scumbags treat people's pensions as their own money(ie MF Global). It has to stop.

Bobbyrib's picture

How is that legal? They force anyone with over $5,000 to go into an annuity? If it is Fixed they force you to get the terrible interest rates that are around thanks to ZIRP. If it is Variable, I'm sure the manager forces you into the stock market bubble.

DavidC's picture

Algos, Robots, SkyNet.

And yes, I had a nice short position on that got reamed.


Comay Mierda's picture

"how does the market melt up if everone is withdrawing? Who is buying?"

That's why it melts up. very low volume. if everyone pulled out and there were only two traders left they could decide manipulate the market and transact the spx at 1600 if they wanted to for a whopping 27% gain

NotApplicable's picture

Bizarro World, where the marginal buyer/seller not only represents the market, it IS the market.

FMR Bankster's picture

Light volume ramp. Takes less cash. And check margin debt, quite high given where the markets at. In other words hedge funds in and cash equity holders out. If your long be very careful here. Markets walking on air. We could move higher into yearend but I'd be concerned the bids fall away sooner.

Everybodys All American's picture

the smaller the market the easier it becomes to manipulate higher or for that matter lower. The big problem which the fool Bernanke fails to recognize is that the fewer market participants the smaller the wealth effect for the people he claims to care for. Bernanke is a failure and no one can defend his policy.

poor fella's picture

If he really wanted to re-inflate the ponzi - he should have came out of the closet and told everyone 'the ramp' is on, buy stocks, even if you can't afford food or gas, because stocks are going up. We'll all have skin in the game. Make it illegal to NOT be in the market - the children will buy equities of those retiring and their children will buy stocks to pay for their parents retirement and.... on ... and on........

That would work, right!!?

Esculent 69's picture

Does nobody see this is all intentioal? collapsing currencies all over the world and now the US has been put in the position to print and print and print to ultimately collapse the dollar. This has been an effort to get rid of the dollar as the worlds reserve currency as stated by china, russia, opec.  the fiat system was put in an awkward postion to have DC to  save their banker and wallstreet buddies even though by printing only to lose our freedom and sovereignty through a eventual world currency / planned economy.  Lehman was allowed to fall because of the importance in the global markets via their commercial and money market accounts.  when that froze up and no one had anywhere to run, they ran to printing money.  George Soros sums it up best in his Open Society where he seeks no borders or nations or cities or towns. You may dismiss him but all you have to do is read his books and his theory of reflexivity and falability.  No Joke

Schmuck Raker's picture

Well that's putting the cart before the egg.

Chuck Walla's picture

Soros does nothing to benefit anyone but himself.  

Alex Kintner's picture

Ghost in the Machine. Not kidding.

Use of Weapons's picture

Aurora Ex Machina.


I did tell ya all...

NotApplicable's picture

Whatsamatta? Too good to use y'all? ;-)

UP Forester's picture

I prefer youse.  As in, "All youse guys know I tolja ta buy PMs, and now youse guys ain't gotta pot ta piss in or a window to trow it out...."

TradingJoe's picture

Sheeples are paying down debt, not "fleeing" the market!!! Only the ones with investable assets and little to no debt will stay inn! IMHO!

panda's picture

Was it not because of the MF Global event?  I would forget about the 8% and keep my cash.

fonzanoon's picture

I know a lot of people who are dumping their horseshit funds but instead are buying individual dividend paying blue chips etc. I don't know if/how that is accounted for here.

Cdad's picture

I'm sure Mary Schapiro of the SEC is right on this...just as soon as she finishes her three year long meetings with Wall Street criminal banking syndicate giants like J. Dimon...about what SEC rules Mary should just forget about.

What an absolute disgrace.  By contrast, dumb ass Bob Pisani summed it all up with, "Well, it [IMF rumor] may have been denied, but it moved the markets."  This is the state of "journalism" at the BlowHorn [CNBC].  


Snake Plissken's picture

Occupy the SEC

Occupy the FED

Occupy the MSM

Occupy Goldman

Occupy the "Tribe"


SillySalesmanQuestion's picture

 SEC = Shred Evidence Completely

          Save Every Corporation

          Sheep Excrement Commission

f16hoser's picture

The Golden JackAss Jim Willie even says your money isn't safe in your TD Ameritrade accounts. Crazy times we live in. I'll be sitting this one out for awhile.