Someone Isn’t “Buying” This Rally: The “Smart Money” Sells For Five Consecutive Weeks As Buybacks Soar
by Tyler Durden
ZeroHedge.com
03/01/2016
Many are trying to put their finger on what has precipitated today’s breakout rally.
On one hand you have Reuters, saying that it is due to economic data which was so poor it “spurred stimulus hopes”…
.. and then you have the sober voices who say it was all Gartman’s doing, who as we reported today, after flopping bullish on Friday, flipped back to bearish overnight as we noted first thing this morning in a warning to the bears in “Today’s Rally Explained: Gartman Is Again “Selling The Markets Short” Just Two Days After Turning Bullish.”
But no matter what unleashed today’s algo buying spree, one thing is clear: someone has to be buying and someone has to be selling into what, Investech yesterday explained, is the latest bear market rally.
Thanks to Bank of America we know the answer to both.
It turns out that the three groups that make up the so-called smart money, hedge funds, BofA’s institutional clients as well its private clients, have been selling aggressively every week. In fact, as BofA’s Jill Hall explains, “last week, during which the S&P 500 climbed 1.6%, BofAML clients were net sellers of US stocks for the fifth consecutive week, in the amount of $1.5bn. This was the biggest weekly outflow since mid-December.
The Rest…HERE
