INSIDER SELLING SOARS HIGHER AS EXECUTIVES SELL INTO THE RALLY
Insider selling surged in the latest week from $960MM in sales to over $1.39B. Buying made a drastic improvement from $29MM to over $166MM. The improvement in buying is a positive sign, but the vast discrepancy in selling continues to overshadow the buying. Insiders are clearly viewing the run-up as a selling opportunity. This is consistent with the very tepid recovery we’ve seen in organic revenue growth thus far during the economic rebound. Executives are still unlikely to invest their personal fortunes in the companies they run due to the fact that they aren’t seeing the organic growth that so many equity buyers are hoping will develop once the government steps aside and stops propping up the economy. Thus far, there are little to no signs of this occurring and this is perhaps most evident in the personal use of insider buying and selling.
Latest buys
Latest sells
Can’t believe this market is rallying over 1% on absolutely no news.
It’s not really no news. We dropped last week on the same no news really. Any potential unwind of government intervention or carry trade will whack the market. Hong Kong is the tell for now. As long as money pours into China markets will likely move higher….
It this the start of a wholesale shift into **any** asset that is not tied to the US economy (not just EM, tech, gold, commmodities)? Will Buffet regret his all-in bet?
In many ways, what we’re doing is not unlike a pyramid scheme. They’re injecting the economy with all of this stimulus hoping that the private sector will eventually pick up the slack. If the private sector doesn’t start pulling their weight soon the pyramid scheme falls apart as the government simply can’t afford to keep propping up the economy.
I actually wouldn’t be surprised if we continue to see a minor recovery into 2010, but eventually all of this money printing will come back to bite us and we will be back to square one within 4 years.
I just began a put position today at around 111.5 spy this morning. I’ll buy more tomorrow if we rally, even if we shouldn’t holiday weeks are weird.
I still think $1.50 one EUR is the line in the sand. If the EUR can break above that level and hold then the equity rally will continue into year end.
Like I’ve said, the equity rally MAY indeed continue, but there has to be a correction first. At least down to the 1060 area.