INSIDERS CONFIRM THAT THE RALLY IS FAKE, ECONOMY IS “GETTING WORSE”

We’re slowly beginning to piece together the puzzle of insider selling that has been so pronounced throughout the rally. By now we all know that the uptick in the economy has been mostly stimulus based. We also know that businesses are still seeing deteriorating top line growth and unsustainable growth via cost cuts. These have been the primary reasons for our skepticism regarding the sustainability of the rally and the economic upturn. As the market soars higher insider selling has been confounding to say the least, but the recent comments from Ken Langone and the Business Roundtable Survey essentially confirm what we have long thought: the rally is built on quicksand. Of course, we’re not the only ones who think the rally is built on quicksand (see here & here for more from Peter Thiel and David Rosenberg).

For the latest week ending 10/01/09 insider selling to buying soared 44:1. Total insider buying was just $11.9MM for the week while insiders continued selling en masse – a staggering total of $532MM in selling. Perhaps most alarming is recent evidence from insiders themselves that confirm why they have been selling. (Full data can be found below).

http://pragcap.com/insider-selling

Related Posts:

• Who’s buying up all the sellers, especially at the end of the day every day?
• S&P500 will hit 700 in 10 months or sooner.
• “The benchmark Standard & Poor’s 500 index is “extremely unlikely” to climb above 1,100, before collapsing again” TCW’s Gundlach says
• The crisis has to end sometime but not too soon for this depression
• Happy Days are Here Again, Music written coincidentally in 1929 before the crash for a musical called Chasing Rainbows before the Wall Street Crash:

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