October 28, 2010
The charade is almost up, as the bad-but-getting-even-worse main street economy is not remotely factored in to Wall Street’s casino calculations.
If you’re a baby boomer who still believes in the stock market since the financial collapse of 2008, listen up. The floor of this Ponzi scheme is about to drop out, leaving you punching a clock for some time to come and holding an empty retirement bag for your effort. The engineered crash is coming and the elite are jumping ship in droves — you should join them and get out ASAP.
Stock market insider selling has now reached record highs. The trend has been increasing for the last several years, but now the ratios are getting beyond ridiculous. Earlier this month, Zero Hedge reported that the insider selling-to-buying ratio is 2341 to 1. Tyler Durden wrote:
After last week saw an insider selling to buying ratio of 1,411 to 1, this week the ratio has nearly doubled, hitting a ridiculous 2,341 to 1. And while Wall Street’s liars and CNBC’s clowns will have you throw all your money into "leading" techs like Oracle and Google, insiders in these names sold a combined $200 million in stock in the last week alone.Today, CNBC reported that the insider selling activity at some of the largest traded companies is at an all-time high. This can’t be a good sign of things to come. The article points to the analysis of Alan Newman, a market strategist who tracks insider trading: "The overwhelming volume of sell transactions relative to buy transactions by company insiders over the last six months in key leading sectors of the market is the worst . . . ever." CNBC reported that industry leaders have a staggering 3177 to 1 insider sell-to-buy ratio:
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 one.The charade is almost up, as the bad-but-getting-even-worse main street economy is not remotely factored in to Wall Street’s casino calculations. Truth is, most states are approaching bankruptcy, unemployment continues to worsen, and yet another major scandal is playing out with Fraudclosure Gate. Newman, the insider trading expert, says, "At the risk of sounding like a broken record, we expect a significant correction."
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."
Unless you are an ultra-sophisticated trader with access to front-running software, it is time to follow these insiders out of the stock market and into real assets. As the Fed announces plans for QE2, which the stock market actually views as a good thing, the elite seem to be flocking to precious metals, commodities, and large agricultural land purchases on the expectation of an even weaker dollar. This appears to make gold, food, and oil pretty safe bets for the average bloke.
Go now, ye rich men, weep and howl for your miseries that shall come upon you. Your riches are corrupted and garments are moth eaten. Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days."- James 5:1-3 KJV.
"And seek not ye what ye shall eat, or what ye shall drink, neither be ye of doubtful mind. For all these things do the nations of the world seek after: and your Father knoweth that ye have need of these things. But rather seek ye the kingdom of God; and all these things shall be added unto you. Fear not, little flock; for it is your Father's good pleasure to give you the kingdom."- Luke 12: 29-32 KJV.