Sunday, September 30, 2018

Insider stock selling continuing in high gear just as Fed changes tune to no longer be accommodative

Last week during the Federal Reserve's September FOMC meeting, Chairman Powell announced that the central bank was changing course and would no longer be 'accommodative' to the markets as they had been under both Bernanke and Yellen.  And perhaps no one knew this day would come better than corporate officers who have been selling their shares over the past few years at lightening speed.


CEOs are using the market boom to quietly cash in their own chips. 
Insiders at US companies have dumped $5.7 billion of stock this month, the highest in any September over the past decade, according to an analysis of regulatory filings by TrimTabs Investment Research. 
It’s not a new trend. Insiders, which include corporate officers and directors, sold shares in August at the fastest pace in 10 years as well, TrimTabs said. 
It would be one thing if September was an anomaly, but the fact that insider shares were being sold so rapidly in August as well indicates that this is a clear trend. – Economic Collapse Blog
Additionally, Lynette Zang over at ITM Trading has been doing a regular podcast showing the ongoing trend of stock buybacks/insider selling that has been occurring thanks to the Fed's cheap money policies and outright buying of equities.



When retail investors such as those who hold 401Ks or Mutual Funds see corporate insiders selling at rates far above their buying of shares in their own company, it is one of the biggest warning signals that the party is about over.  And with the Fed also signaling that their support of stocks has reached an end, then the clock has begun ticking for those holding equities to get out while the markets remain at all-time record highs, or risk trying to catch a falling knife like in 2000 and 2008 when there were few buyers for the mass of stock sellers.

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