Insider Selling Volume at Highest Level Ever Tracked

In this upside down world where nothing is what it seems, you should do the opposite of your being told

I say get into the market, take advantage of sectors that haven't grown bubbles...like Uranium

reply to post by ADUB77



Back before I joined a sunk a fair amount into security co's. Thru the roof!
An still climbing especially video. I wonder why....

BRIC is making a nice move after being flat.

reply to post by boondock-saint


Buy platinum, it's more valuable than gold per weight, if you subscribe to the metals theory of weathering economic collapse. Metals only work in partial collapses, not to mention gold has been artificially inflated over the last 5 years, and is still valued not in gold or production but in ... that's right currency. Value, even of metals is measured only in currency, and has no future production beyond what it can be used for in real goods.

If anyone wants a real hedge, buy land. It has production value, even in a completely collapsed economic system.

I would also not suggest buying gold either

An ATS'ers perspective on gold is you should buy it (in physical form) so that if the currency fails you can use it to barter

This is some sort of illusion brought on by fear, but I will address that in a minute

TPTB, elites, bankers, whatever you wanna call em, people with money, buy gold when the currency is being dilluted (more money being put into the system)

However, they do not want currency to fail, in fact that is the last thing they want, for if it failed, how are they going to make money selling the gold they bought for 200 an ounce?

Once QE is finished and the same PTB decide to go into growth mode, they will sell there gold as fast as possible into the market, making a very healthy profit, and now can buy back US T-bills, fund all sorts of new growth things, fund Obamacare...

And as for the apocolypse gold currency scenario,

Here is a scenario, you have a piece of 1 oz gold. How do you plan to cut an accurate 1/10th, or 1/100th in order to trade for goods? Will you use digital scales to weigh the gold? Batteries? Who decides how much gold can buy? How can you buy food if there is no food to buy?...

The ATS mentality towards buying gold is along the lines of a horror film

Originally posted by whaaa
reply to post by boondock-saint

 

Even if you have bullion or coins and you need to liquidate some of it....who's going to buy it?


Real gold will be fools gold as well.

I bought into the precious metals hype and now with 1300 gold and 23.00 silver spot.....no one is buying!!

edit on 27-10-2010 by whaaa because: (no reason given)

Sell it back to the folks you bought it from. I was in my local shop and the place was as busy as ever. I made a purchase and while there, a gentleman was selling his slabbed $20 gold pieces along with 10 gold eagles. We was quite unhappy about selling them but needed to cash out to help his unemployed kids. He told the counter rep he had purchased his eagles, from the same shop, a few years ago at around $450. With gold over $1300, he wasn't crying in his beer. He got paid in FRN's. Yuk!

This is how insiders (officers or board members) operate.

1. They receive shares at no cost through stock option benefit plans.

2. They sell.

Note : They do not buy rarely, if ever. Would you buy if you received shares for $0.00?


This is great for the media and other outlets for misinformation. It garners a few more advertising dollars and keeps sensationalism at a steady pace.

I was thinking about this and maybe the reason these insiders are selling is because of the change in the tax code coming up in 2011. There is talk about in increase in the capital gains tax from 15% to 30%. I think that is a pretty good reason to cash out in 2010.

These insiders have had so much of an effect on the market today that it was just about flat.

At 6500 on the Dow they told everybody to stay out or sell to get what you had left before it went to zero. . It was going to take 20 years to come back. I bought as much as I could afford and have since almost doubled my money. I knew it would never stay that low for long. It could easily go to over 14000 from here.

More likely those out, will start stampeding back into the market once they realize the sky didn't fall.

Originally posted by St Udio
the insider 'selling' is just a function of the HFT programs...
heck, they got multi thousands or even millions of option shares in their back pockets...

don't you believe for an instant that the metrics are telling the public there is a mass
unloading -never to return again- selloff by the insider elites....


sheeze

Quite often there is a lot of insider stock buying prior to a stock rising in price. When the opposite happens, ie lots of insider selling, it would tend to indicate the stock is going to drop in value. Those who should have the best grasp of how their stock is performing (insiders) get out when they know a stock has topped out.


Take a look at Bank of America........ Top Execs are exercising their options and the immediately selling them. Looks like over a Million in options exercised and then sold since September.
www.reuters.com... g?symbol=BAC.N&name=&pn=1&sortDir=&sortBy=

I'm sure the trend will be the same in other companies.

wall street should be closed and all its members thrown in jail like the thief's they are
they screw everything up and have ruined the world its a game for the most corrupt and evil

Originally posted by pavil

Originally posted by St Udio
the insider 'selling' is just a function of the HFT programs...
heck, they got multi thousands or even millions of option shares in their back pockets...

don't you believe for an instant that the metrics are telling the public there is a mass
unloading -never to return again- selloff by the insider elites....


sheeze

Quite often there is a lot of insider stock buying prior to a stock rising in price. When the opposite happens, ie lots of insider selling, it would tend to indicate the stock is going to drop in value. Those who should have the best grasp of how their stock is performing (insiders) get out when they know a stock has topped out.


Take a look at Bank of America........ Top Execs are exercising their options and the immediately selling them. Looks like over a Million in options exercised and then sold since September.
www.reuters.com... g?symbol=BAC.N&name=&pn=1&sortDir=&sortBy=

I'm sure the trend will be the same in other companies.

It's not as though they have a crystal ball and know what is going to happen in the market. It isn't a bad time to get out of the market. If nothing is done the capital gains will increase from 15 to 20% for most and those in the lowest bracket will go from 0 to 10%. So recently the market has been going up and their could be a set back that might last past the end of the year.

This is how they rob the bank without guns. The executives get stock options for nothing. They cash it out and run off with the free money. The share holders and tax payers get ripped off. For running the bank into the ground they all get bonus stock options.

Originally posted by Oldnslo

Originally posted by whaaa
reply to post by boondock-saint

 

Even if you have bullion or coins and you need to liquidate some of it....who's going to buy it?


Real gold will be fools gold as well.

I bought into the precious metals hype and now with 1300 gold and 23.00 silver spot.....no one is buying!!

edit on 27-10-2010 by whaaa because: (no reason given)

Sell it back to the folks you bought it from. I was in my local shop and the place was as busy as ever. I made a purchase and while there, a gentleman was selling his slabbed $20 gold pieces along with 10 gold eagles. We was quite unhappy about selling them but needed to cash out to help his unemployed kids. He told the counter rep he had purchased his eagles, from the same shop, a few years ago at around $450. With gold over $1300, he wasn't crying in his beer. He got paid in FRN's. Yuk!

edit on 27-10-2010 by Oldnslo because: poor sentence structure

You didn't read the post you responded to... Seems like an epidemic these days...

Your man bought them at $450 an ounce how many years back? The post you replied to was someone who bought them at around $1300 an ounce...

Oh well im sure you feel smug

...
For 24 straight weeks, retail investors have been pulling tens of billions
of dollars out of U.S. mutual funds and plowing hundreds of billions into
low-yield Treasury bonds.

Why? Because they sense the stock market is hopelessly, deeply corrupt
and by comparison Treasuries are trustworthy. You won't make a lot of
yield in Treasuries, thanks to the Fed's zero-interest rate policy (ZIRP)
which is designed to drive money into risky assets, but then you won't
lose 40% like you did in 2008-09 or 2000-2002 in the stock market.

We can also see how insiders are responding to the knowledge that the well
has been poisoned: they're selling 500 shares for every share they buy.
This unprecedented cascade of insider selling has been noted elsewhere
many times, as has the declining expectations for the "recovery" of U.S. CEOs.

Those who know the most are selling their shares as fast as they legally can,
and are publicly expressing their lack of faith in the tricked-up "recovery."

The U.S. financial markets have been poisoned, with long-term negative
consequences. Only crooks, fraudsters and "marks" (those who still believe
the propaganda about the "recovery" and "stocks are cheap" poison)
will be left in a stock market propped up by the same socialization
of risk which keeps the flimsy facade of a mortgage market from crumbling.
High-frequency trading machines create the illusion of a market,
and State intervention via proxies and other corrupt games provides the
liquidity needed to fund the facsimile of a "rising market" and a "recovery"
in the U.S. economy. But the public isn't buying the fraud any longer;
they finally "get it":
The well has been poisoned and only a fool drinks from a poisoned well.

source of snippet: www.oftwominds.com...

with the info in above links synopsis, i think there's a rationalization taking place...
because there is the 20% of well-heeled people sitting on the sidelines
that were normally in-the-markets not so long ago...
the real reason for their market withdrawl is that they understand its
all rigged, the well-is-poisoned..

So, the high numbers of sell orders in the DOW stock market and especially
the elite CEO class of stock holders on a 'sell' mania is because they are
getting out while the getting is good... getting as much fiat dollars as possible
and i don't know just where they are parking that money...gold & PM?

all in all... the article is good enough to be included in this thread of info & knowledge

Check your history, on the 1929 collapse.

In 1907, there was a market collapse driven by bankers calling in margin loans. They did the same thing 22 years later, 1929, after quietly selling stock about six months before and buying into gold/silver and driving the price up.

In 1987, there was a market collapse driven by bankers misuse of automatic trading software. They then crashed the market again, 21 years later, in 2008.

TWO YEARS after the 1929 crash, there was actually a bigger crash in 1931, which intensified the Great Depression. The Great Depression was extended by the Fed refusing to release extra money into the market place, and millions of homes and farms being foreclosed on due to the market crash.

Jeez, is all this starting to sound familiar?

They're using the same playbook people. We're on course for the second, bigger crash. The Fed meets soon - if they say that they won't release extra cash (or as much as the Government wants) into the market place, I'll expect the second bigger crash at any time.

Several news outlets are reporting today that foreclosure rates are at a "staggering" rate right now as well, and many more expected to come across the USA very, very soon.

Time to follow the same playbook they used in 1931. Pull out of the market NOW and buy silver and/or gold. I've put my entire holdings into silver at the moment (I believe it has a better percentage increase chance than gold, but hey, do your own research and decide for yourself).

reply to post by babybunnies


You should probably check out the current reality. Nasdaq is at 2007 highs already, up 100% from the bottom. This isn't 1929. It is getting outright laughable with the continued comparisons.

reply to post by Doctor Smith


I pretty much agree with all you said, except for the part about the crystal ball. They may not know about the market, but they sure as heck know the direction their company is about to take.

Stocks options are the should be the bane of every stockholder. If people only knew what they are and how they actually work.......People should read up on it more.....it would disgust most people. Good book for this is Blind Faith by Edward Winslow www.google.com... og?q=book+blind+faith&hl=en&client=firefox-a&hs=eqa&rls=org.mozilla:en-USfficial&prmd=vs&um=1&ie=UTF-8&cid=14090809427697328865&ei=TOzJTMzSO8Wblgf6u fj6Cg&sa=X&oi=product_catalog_result&ct=result&resnum=8&ved=0CGUQ8wIwBw#

reply to post by pavil


Care to expand on your comment?

There is nothing nefarious about it.

reply to post by babybunnies

no offense bro
but this isn't 1929
the market doesn't work the
same today as it did 80 yrs ago.

Originally posted by Dance4Life
reply to post by pavil

 

Care to expand on your comment?

There is nothing nefarious about it.

Stock options for the average employee are fine, it the options that can make up 80% of a CEO's earnings from a company that I question.

Stock options of the level that executives of large companies get reward short term results, often at the expense of long term growth. BOA executives for example, according to the chart I quoted, got options that cost them $0. It is free money to them. It rewards them for taking risky behavior with no real offsetting pain should that risk fail and infact encourages them to cheat the performance of the company to get their options. When you hear of companies cooking their books, it's mainly due to the top level management getting huge options paydays. They need to make the numbers "right" in order for their options to pay off for them.

www.businessweek.com... 5.htm

Because stock options do stimulate risk-seeking behavior, as we know from academic research. Options, as you might know, represent a right to buy shares at a certain price at some fixed point in the future. If you are given the right to buy a share in company X for $100 in January 2010 and by then the share price of X is $120, you will have made 20 bucks. However, if the company's share price by then has dropped to $90, your option is worthless. We then say it is "out-of-the-money"; you're not going to exercise your right to buy at 100 when the market price is merely 90.

In that situation, if the CEO of X has many stock options, it stimulates him to be very risk seeking. For example, if by August 2009 the share price is 90, he will be inclined to engage in risky "win or lose" moves. If the risk pays off and the share price rises well above a 100, the stock options will become worth a lot of money. However, if he loses, and the share price plummets even further, say to 60, no worries; it doesn't matter. The stock options to buy at $100 were worthless anyway; whether the stock trades at 90 or at 60.

And research by for example Professors Gerry Sanders from Rice University and Don Hambrick from the Penn State University showed that these things work. They examined 950 American CEOs, their stock options, and their risk taking behavior. They found that CEOs with many stock options made much bigger bets; for instance, they would do more and larger acquisitions, bigger capital investments, and higher R&D expenditures.

However, they also showed that they weren't always very good bets... The option-loaded CEOs delivered significantly more big losses than big gains. That's because they didn't care much about the losses (their options were worthless anyway); all they were interested in were the potential gains.

Moreover, Professor Xiaomeng Zhang and colleagues, form the American University, examined the relationship between stock options and earnings manipulations; plain illegal behavior. They investigated 365 earnings manipulation cases and showed that CEOs with many "out-of-the-money" options were more likely to misrepresent their company's financial results (and get caught doing it!).

reply to post by pavil


This isn't correct.

In the greatest majority of cases there is a contract that is predetermined before arrival. Even for directors -> senior managers. These do not increase unless there is a stipulation that their earnings forecast projects beyond a multiple while they are at the helm.

That is a terrible example, and it doesn't make a lot of sense even. Most of the time senior management & above usually make a very low salary for these purposes. Either they help make the company perform, or they are essentially paid nothing if the stock tanks.

Stock options are a very good idea, plus they are highly regulated. You must also file a form with the SEC PRIOR to selling them which is also public record. I am guessing you have just read some backwards article and are forming an opinion based on a terrible example or outright misinformation.

By the way, they also have a fiduciary responsibility to all shareholders. Their number 1 priority is to make the stock go higher.