Crash Imminent? Corporate Insiders Sell Off Everything Including The Kitchen Sink

Corporate insiders have recently been selling everything they can. The Sell vs.Buy ratio for corporate insiders is at 8279 to 1.

This is the kind of behavior that precedes a major market crash.

They are all getting out while the getting is still good and the Fed is buying all of their crap stocks.

Zero Hedge reports:

Zero Hedge readers already know that in the latest week the insider selling to buying ratio hit unprecedented levels. Obviously, corporate officers and insiders have decided to take advantage of the artificial wealth effect and bail, especially since it is still unclear whether capital gains taxes will be the same in the following year. However, it is not only insiders who see between the lines. As the following charts demonstrate, the smart money is now either bailing from the stock market in droves or hedging for a market crash like never before...

Hmmm.
I read through most of the posts on the page linked,.
Nobody seems worried there

Well I just cursed an earful. Seriously, the fed is buying their stocks????

That has to be one of the most corrupt things I've ever heard. These people are just raping America over and over again, bending us all over and no one can make them stop. It's disgusting.

reply to post by mnemeth1



Well spotted, mnemeth.

S&F

there is a currency pair that leads the way on all other markets.....and yes, it's frickin exhausted....

nothing to worry about.

Originally posted by ac647
nothing to worry about.

I challange you to come back here Wednesday morning and say that friend .
Go on dare ya !

I dont know but the ftse is getting a beating after gapping up. Also the markets are failing to break through the resistance that resulted in the May flash crash.

reply to post by 13th Zodiac


As soon as they can't control the masses with money they have no more control, its as simple as that. I used to believe every fart and groan from the stock market until seeing the bigger picture. Even if it collapses it'll be back up and running with a 'different' currency in no time.

reply to post by mnemeth1

I'm interested in this but I probably lack your level of expertise, so I'd like to ask a few questions if I may.

First, with the ratio of corporate insider selling to buying being so high (as you stated), is there any body of historical data that shows this is, in fact, a definitive indicator of an impending market crash? Have any studies been done that show this?

Secondly, if they are selling then someone must be buying. That's obvious to people like yourself who follow these things, but even I can follow that much with my limited knowledge. So, as it's obvious there have to be major buyers, I'm wondering that if it's the Fed, do we have current data or reports to prove that? You see, I read the article you linked to and I couldn't find any statement in it that the Fed is buying all these stocks. All I found was:

Our only question: aside from the Primary Dealers, the HFT momentum traders who have no balance sheet, and the Federal Reserve: who is there to buy?

I don't see that as a definitive statement that (as you put it)

the Fed is buying all of their crap stocks.

If you have other sources that do actually state what you assert regarding the Fed buying all their (crap) stocks, could you please provide a link? Don't get me wrong: I'm not criticizing you. Far from it. I'm willing to believe that the Fed is capable of just about anything, no matter how economically unsound. So, buying huge amounts of crap stocks wouldn't surprise me. I'd just like some kind of reliable reference source to confirm this is what they are doing right now.

Many thanks and best regards,

Mike

I believe it's a combination of many things. First there is the debt crisis in the European Union which is causing the dollar to strengthen which doesnt bode well initially for the stock market. Then there is QE2 from the Fed that is tring to drive DOWN the dollar and may only succeed in increasing inflation. The overriding factor i believe is the increase in capital gains tax rate from %15 to 20% on January 1, 2011 if the lame duck session doesn't approve the extension of the Bush tax cuts.

I'm not exactly well-educated in financial systems... so maybe someone could answer this question for me.

If all these "insiders" are selling their stocks, and the fed is buying them, doesn't that mean that the fed could come to own the companies these stocks belong to?

Is it possible that if a giant sell off/crash occurs, and the Fed uses its artificial money to buy all the stocks, the Fed will come to own the vast majority of stocks and therefore companies in the US?

I have a post about the stock tickers acting weird today.
cnn stock ticker acting weird

and for those who don't know

Yahoo stock ticker was frozen for hours

Originally posted by GhostR1der
reply to post by 13th Zodiac

 

As soon as they can't control the masses with money they have no more control, its as simple as that. I used to believe every fart and groan from the stock market until seeing the bigger picture. Even if it collapses it'll be back up and running with a 'different' currency in no time.

Correct. These aren't real collapses, anyways. The market is irrational, and totally based on abstract concepts that only loosely represent what's actually occurring in the real world. Even if this artificial collapse does occur, it'll be short lived because the ruling class simply won't allow chaos to ensue. It doesn't serve them well. This should be pretty obvious to CTers who have thought this out for a while.

if you read the comments on the zerohedge article, you'll see that this isn't an increase in insider selling which would imply that this is somewhat normal for this time of year.

insiders must disclose when they plan on buying or selling shares and, as a result, many insiders have planned purchases and sales and this could just be normal, end of year selling, per that schedule.

I believe this is a reaction to the upcoming expiration of the Bush tax cuts.

reply to post by Crakeur


that seems logical, but then the Dec 7 date popped into my head, the bank run in the UK could this be preparing for that?

reply to post by Monts


bingo, then once the crash has occured introduce the new monetary system and off and running goes the stock market, with less than 3 percent owning all companies, good to see someone else observing the scenario that is rolling out before the masses

nice find op

reply to post by -W1LL


doubt it as the insiders selling need to register their sales in advance of the actual sale.