TROUBLING DATA

Sucker alert

 

"Insiders have been pulling out of stocks just as small investors are getting in.

Selling by corporate executives has surged recently as the Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) hit 14,000 and retail investors flooded into stocks. The amount of insider selling has usually preceded market selloffs.

"In almost perfect coordination with an equity market that was rushing toward new all-time highs, insider sentiment has weakened sharply - falling to its lowest level since late March 2012," wrote David Coleman of the Vickers Weekly Insider report, one of the longest researchers of executive buying and selling on Wall Street. "Insiders are waving the cautionary flag in an increasingly aggressive manner."

There have been more than nine insider sales for every one buy over the past week among NYSE stocks, according to Vickers. The last time executives sold their company's stock this aggressively was in early 2012, just before the S&P 500 (^GSPC) went on to correct by 10 percent to its low for the year.

"Insiders know more than the vast majority of market participants," said Enis Taner, global macro editor for RiskReversal.com. "And they're usually right over a long period of time."

 

NO BUDGET

President Barack Obama, having missed the statutory deadline for submitting his budget to Congress, is proposing instead that Congress pass a short-term plan to delay across-the-board spending cuts due to take effect March

 

Rick Santelli:

I would like to read something that richard favre wrote about a month ago. payroll's lag population growth for all but one more in 2012. including the january census adjustment, jobs trail population growth by 1.9 million. and that's in 2012. welcome risk

 

RECORD STOCK BUYING BINGE

Investors didn't just put aside their aversion to stocks in January: They tossed it out the window.

Investors flooded traditional stock funds and exchange-traded stock funds with a record $77.4 billion in January, according to TrimTabs.com, which tracks flows in and out of the stock market. January's inflow was $23.7 billion higher than the previous record, set in February 2000.