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…
- [What] is so alarming [this time round is] 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? [Could it be that they] have insider knowledge that a market crash is coming?
Evaluate the evidence below and decide for yourself. Words: 570
So writes Michael Snyder (http://theeconomiccollapseblog.com) in edited excerpts from his original article* entitled Do Wall Street Insiders Expect Something Really BIG To Happen Very Soon?.
This article is presented compliments of www.munKNEE.com (Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Snyder goes on to say in further edited excerpts:
- 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?
The last time executives sold their company’s stock this aggressively was in early 2012, just before the S&P 500 went on to correct by 10% to its low for the year. Insiders know more than the vast majority of market participants [so this is something to make note of.]
Another indication that the stock market may be headed for a significant tumble in the months ahead….[is that] the last time that the financial markets in the U.S. were as “euphoric” as they are now was right before the financial crisis of 2008.
As I mentioned above, some people out there have recently made some absolutely jaw-dropping bets against stocks which will only pay off if there is a financial crash at some point in the next few months. Business Insider reports that:
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.”
Reportedly, those put options expire in April.
Art Cashin of UBS has also noted that:
In past years I have reported on trades that were so large it appeared someone had inside knowledge of a pending event. Sometimes those were massive put positions on the S&P. A new trade just appeared that suggests there will be a market event in the near future. Last week somebody put on a call spread on the VIX using the April 20 and 25 puts. They bought 150,000 contracts for a net of $75 per contract. That is an $11,250,000 bet that the VIX will move over 20 over the next 60 days. You would have to be VERY confident in your outlook to risk $11 million on a directional position with the VIX at five year lows and the markets trying to break out to new highs.
[The above does not]… of course, guarantee that the stock market is going to move a certain way…but when you step back and look at the bigger picture, it does appear that Wall Street insiders are preparing for something.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
As we all know, money printing always leads to inflation. It’s just a matter of figuring out which assets get inflated. This time around gold is not the only beneficiary, stocks are, too, and I’m convinced that the chart below holds the key to the end of the bull market. Words: 475; Charts: 1
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At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008. The false stock market bubble will burst, major banks will fail and the financial system will implode. It could unfold something like this: Words: 660
Ever since the Dow broke the 14,000 mark and the S&P broke the 1,500 mark, even in the face of a shrinking GDP print, a lot of investors and commentators have been anxious. Some are proclaiming a rocket ride to the moon as bond money now rotates into stocks….[while] others are ringing the warning bell that this may be the beginning of the end, and a correction is likely coming. I find it a bit surprising, however, that no one is talking of the single largest driver for stocks in the past 4 years – massive monetary base expansion by the Fed. (This article does just that and concludes that the S&P 500 could well see a year end number of 1872 (+25%) and, realistically, another 28% increase in 2014 to 2387 which would represent a 60% increase from today’s level.) Words: 600; Charts: 3
For the month of January, U.S. stocks experienced the best month in more than two decades [and the Dow hit 14,009 on Feb. 1st for the first time since 2007]. Per the Stock Traders’ Almanac market indicator, the “January Barometer,” the performance of the S&P 500 Index in the first month of the year dictates where stock prices will head for the year. Let’s hope so…. [This article identifies f more solid reasons why equities should do well in 2013.] Words: 453
It seems clear that there are a number of investors who have gained confidence in the global economy and are seeking to capture the growth opportunities taking place around the world. With the European crisis comfortably in the rear view mirror and global central banks taking the position that they will continue their easing policies, investors have taken their foot off the brake and have begun to accelerate….We see more sunshine and less stormy weather ahead [and explain why that is the case in this article]. Words: 695; Charts: 3
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