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Insider Buying/Selling Ratio Now 61-1...


Hey, cat, I'm glad to see someone else besides myself reads ZeroHedge religiously. I couldn't believe the ratio exploded this much. They've been selling since the low, and based on what I've read, that's never happened like this at a bottom in history. Quite a 'bull' market, eh? This one is also interesting:

http://www.zerohedge.com/article/current-market-move-third-biggest-pe-multiple-expansion-recorded-shortest-time-ever
Simply amazing. Fall is going to be very interesting...

"This likely means that the market will exhaust its "hope" promptly and the current PE of 20x will collapse long before the EPS growth phase is initiated, resulting in either a double dip, a W, or whatever other soundbiting definition one wants to attribute to what the market will look like over the next 6 months."
Here's a video on the same subject. It's the CEO of TrimTabs on Bloomberg...

http://www.youtube.com/watch?v=i1MVBea6Qaw&e
Insider selling ratio now 80 to 1. Some kind of bull market, this is...

http://www.zerohedge.com/article/bob-toll-once-again-joins-insiders-unprecedented-stock-selling-spree
Looks like the insiders have become dumb money and the retail trader smart money.
Yep, and we all know how likely that is...
I do not think retail investors are participating in this bear market rally. In which case the "dumb money" chasing prices higher are the mutual fund managers being driven like sheep through the gate by the HFT momentum algorithms. The smart money is taking advantage of these prices to liquidate long term investments. I would liken this to a game of musical chairs.
You know, PT, your interpretation is exactly like mine, but then I read this, and I am rethinking the first part:

http://www.zerohedge.com/article/1999-party-girls-gone-wild

If that is accurate, then retail daytrading volume hit an all-time record this past August. If that's so, then the top should be near...

This only makes articles like the following all the more interesting:

http://www.financialarmageddon.com/2009/09/jim-grant-ringing-the-bell-at-the-top.html
quote:
Originally posted by jimkane

You know, PT, your interpretation is exactly like mine, but then I read this, and I am rethinking the first part:

http://www.zerohedge.com/article/1999-party-girls-gone-wild

If that is accurate, then retail daytrading volume hit an all-time record this past August. If that's so, then the top should be near...

This only makes articles like the following all the more interesting:

http://www.financialarmageddon.com/2009/09/jim-grant-ringing-the-bell-at-the-top.html




In my original statement, I was referring to the average retail investors, meaning people with a job in the real economy who would put new money (retirement savings) to work with at least a 3 to 5 year time horizon.

I agree the level of daytrading is high. Look at the daily turnover in the 3X ETF's, like FAS and FAZ. 1/4 of the daily trading volume on the NYSE is consistently in 5 financial (zombie) stocks: C, BAC, AIG, ect... This is short term speculation not long term investing. Long term investors are not accumulating FAZ and AIG .... lol

So we have a high level of speculative daytrading, a high level of bullish sentiment, and a high level of insider selling and no insider buying.... hmmm
I see, PT. Yes, I agree, retail investors want nothing to do with this. I wasn't paying close enough attention when I read your post to make the distinction, thanks for pointing that out. I think the point we are both making is that this doesn't look to end well for the long side?

Here's another sentiment reading:

http://www.zerohedge.com/article/speculative-bullish-option-activity-hits-decade-high