vestors, let alone billionaires, will want to own stocks with
falling profit margins and shrinking dividends. So if that’s why
Buffett, Paulson, and Soros are dumping stocks, they have decided to
cash out early and leave Main Street investors holding the bag.
…
Google Inc. chairman Eric Schmidt plans to sell up to $2.51 billion
of his share in the company, according to a Securities and Exchange
Commission filing late Friday.
http://articles.marketwatch.com/2013-02-08/markets/36990257_1_shares-of-google-stock-eric-schmidt-plans
Venezuela devalued its currency, the bolivar, the country’s Finance
Minister Jorge Giordani said Friday. President Hugo Chavez ordered the
move from Cuba, the minister said
http://articles.marketwatch.com/2013-02-08/markets/36989549_1_finance-minister-jorge-giordani-devalues-venezuela
Could these be the signs of the upcoming market collapse people have
been talking about? I don’t know, but things could start to get
interesting.
Something happened this week that brings back haunting
memories of the 2001 put options of airline stocks, except this “bet” is
against the entire U.S. economy. This week, an anonymous trader bought
100,000 put options on the ETF, which is an acronym for an
exchange-traded fund. One commonly traded ETF is XLF, which, in the most
unscientific and basic terms, is a group of funds that is like a
barometer for the stock market.
Now, such trades involving ETF-XLF are common, except when the put
options (bets that the value of an asset is going to go down) are so
large and so significant that they scream of insider knowledge with big
flashing lights and arrows. This is one of those. In this case, it is a
bet against
the stock market
, although this is admittedly a rather oversimplified explanation – but you get the idea.
According to professionals who watch this activity for a living,
normal single trades involve maybe 500 contracts at most. That’s why
certain professionals took notice of an order this week of 100,000 put
options, or 200 times the high trade volume of 500. It become even more
curious when one considers that the trader is “betting” that the market
will take a significant hit by the end of April. (The put options are
dated for April 20 and 25, 2013, right around Hitler’s birthday, for
those of you who follow things like that.)
Over the last week and a half, high level JP Morgan executives have
dumped over $6 million in shares in what experts have described as
‘unusual activity’.
Anyone believe JPM’s October 12th earnings report which beat
expectations? Looks like accounting BS engineered to dump legacy
positions on the general public.
A chorus of high-level executives inside JPMorgan (JPM) are selling
down their stakes in the company, in what some experts are citing as
“unusual” activity within the nation’s largest bank by deposits.
CNBC reports that JPM execs have dumped $6 million in the past 10 days!
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