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Thursday, February 07, 2013

Do Wall Street Insiders Expect Something Really BIG To Happen Very Soon?


Wall Street Sign

By Michael, on February 6th, 2013

Why are corporate insiders dumping huge numbers of shares in their own companies right now?  Why are some very large investors suddenly making gigantic bets that the stock market will crash at some point in the next 60 days?  Do Wall Street insiders expect something really BIG to happen very soon?  Do they know something that we do not know? What you are about to read below is startling.  Every time that the market has fallen in recent years, insiders have been able to get out ahead of time.  David Coleman of the Vickers Weekly Insider report recently noted that Wall Street insiders have shown "a remarkable ability of late to identify both market peaks and troughs".  That is why it is so alarming that corporate insiders are selling nine times as many shares as they are buying right now.  In addition, some extraordinarily large bets have just been made that will only pay off if the financial markets in the U.S. crash by the end of April.  So what does all of this mean?  Well, it could mean absolutely nothing or it could mean that there are people out there that actually have insider knowledge that a market crash is coming.  Evaluate the evidence below and decide for yourself...
For some reason, corporate insiders have chosen this moment to unload huge amounts of stock.  According to a CNN article, corporate insiders are now selling nine times more of their own shares than they are buying...

According to Barron's columnist Steven Sears, someone made a big bet against the financials ETF yesterday (ticker symbol XLF), and it has everybody buzzing.
The trader bought 100,000 put options on the ETF (a put option increases in value when the price of the underlying asset, in this case, the ETF, goes down).
To put that number in perspective, Sears writes, "Few investors ever trade more than 500 contracts, so a 100,000 order tends to stop traffic and prompt all sorts of speculation about what's motivating the trade." According to Sears, the trade "has sparked conversations across the market."
 Full Article at theeconomiccollapseblog.com



3 comments:

  1. Of course some thing big is going to happen. We all know that. You have to be an idiot to not see it.

    The only thing we haven't been able to figure is when.

    We all know something else:

    When the rats start leaving the ship, it's time to find a lifeboat.

    Another thing we all know:

    Wall Street is populated by rats.



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  2. read "the big short" by michael lewis. it's great insight into the greed and incompetence of wall street.

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  3. Bob - Looks like the rats are quietly inching towards the exits.

    Billy - I'll try. This reminds me of all the put options on American Airlines on 9-11-2001.

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