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The largest companies in three of the most important leading sectors of the market have seen their executives classified as insiders sell more than 120 million shares of stock over the last six months. Top executives at these very same companies bought just 38,000 shares over that same time period, making for an eye-popping sell to buy ratio of 3,177 to 1.
The grand total for the three sectors are “as awful as we have ever seen since we began doing this exercise years ago,” said Newman, who was ahead on such trends as the dangers of high-frequency trading and ETFs before the ‘Flash Crash’. “Clearly, insiders are seeing great value only in cash. Their actions speak volumes for the veracity for the current rally.”
Newman, who is also a favorite commentator of Barron’s columnist Alan Abelson, sees the insider selling as just the latest reason, along with the mortgage foreclosure mess and fully invested mutual fund managers with no fresh powder to put to work, to be cautious on the market.
“At the risk of sounding like a broken record, we expect a significant correction,” said the newsletter editor.
Originally posted by alonzo730
There was a guy by the name of Chris Kacher on Coast To Coast AM last night talking about how the behavior of the market can predict major events, like 9/11 for instance. Looks like the rats are leaving the sinking ship.
Originally posted by DINSTAAR
Hide your 401k, hide your pension, hide your IRA cuz they be raping everybody around here.
Buy gold.
Originally posted by boondock-saint
you are forgetting one very important factor,
foreign investor variables and foreign
markets.
Originally posted by thorg
What happens when the TPTB decide we can't own gol d like a couple decades ago during the crash ? Barter/ trade in goods will be the real power of any household. Just a thought about the times that we are told is coming.
Originally posted by St Udio
Originally posted by boondock-saint
you are forgetting one very important factor,
foreign investor variables and foreign
markets.
an analysis is needed here...
to see if the foreign markets are the ones' causing the increased volume (VIX)... or its just
HFT programs that the elite execs are suddenly employing...
i personally do not have that data
with all the QE & anticpated QE2 after the elections...
the foreign markets are either keeping out of the daily trading, or else already have sold
their positions in the DOW/NYSE...
i suspect that they have long ago divested & that is the reason for the shallow number of
shares trading in the last 6-10 months...
to wit: its only been the 'traders' and 'fund managers' contributing in the volume area....
up till now!
with commodities going manic, the insider elites in the Corps. are utilizing the (HFT) High-
Frequency-Trading experts to eek a penny - two pennies out of 100k blocks of shares,
then to buy them back in an eternal game of arbitage like trading...
hell the elite execs can afford the pricy HFT experts because they are assured another year
of record bonuses
even as 50 million former middle class get FoodStamps or 99 weeks of jobless benefits
& a pat on the back from the mortgage foreclosure servers !edit on 27-10-2010 by St Udio because: oops