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Institutional Traders Secretly Preparing For Stock Market Crash

 
Stock Trading Master
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04/06/2014 07:35 PM
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Institutional Traders Secretly Preparing For Stock Market Crash
The famous technical analyst John Murphy posted a chart on Saturday, April 5th, 2014, that shows institutional traders and money managers are secretly preparing for a major stock market crash.

gasp

The chart shows sector rotation and money coming out of consumer discretionary stocks and going into defensive stocks and bonds. This rotation started on January 1st, 2014 and continues today.

In my opinion this gets downright sinister when you consider that these same institutional traders and money managers are coming out in the mainstream financial media saying that they think 2014 is going to be another great year for the stock market.

drevil

John Murphy chart and article going more into this here: [link to www.guerillastocktrading.com]
Anonymous Coward
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04/06/2014 07:39 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
What would be considered defensive stocks and bonds????
markyb
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04/06/2014 07:56 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
What would be considered defensive stocks and bonds????
 Quoting: Anonymous Coward 55489839


U.S. gov't bonds, utility stocks and non-discretionary goods manufacturers.

check out the utilities ETF since January;

[link to finance.yahoo.com]

they wouldn't necessarily buy this ETF, although it represents the underlying stocks.
Anonymous Coward
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04/06/2014 08:07 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
Thanks for that. I try to take care of my wife's 403b and the choices are limited. Finding non discretionary is near impossible with her 403. I'm assuming food and energy or does pharma fit here?
Stock Trading Master  (OP)

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04/06/2014 08:09 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
What would be considered defensive stocks and bonds????
 Quoting: Anonymous Coward 55489839


Consumer staples, Utilities, Energy, and US Treasury bonds.
Anonymous Coward
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04/06/2014 08:13 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
Thanks!
Stock Trading Master  (OP)

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04/06/2014 08:15 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
Thanks for that. I try to take care of my wife's 403b and the choices are limited. Finding non discretionary is near impossible with her 403. I'm assuming food and energy or does pharma fit here?
 Quoting: Anonymous Coward 55489839


I feel for you. They limit the choices on purpose. Yes, big pharma (not speculative biotech) non-discretionary as well. Think of it as anything that people will continue to buy even though they are broke, because they have to. In the case of pharma, people will continue to get sick and get diseases, cancer, etc. even if they are broke and, as such, require pharmaceuticals. With ObamaCare being a big boost for pharma, it's a solid non-discretionary choice.
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04/06/2014 08:19 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
What would be considered defensive stocks and bonds????
 Quoting: Anonymous Coward 55489839


U.S. gov't bonds, utility stocks and non-discretionary goods manufacturers.

check out the utilities ETF since January;

[link to finance.yahoo.com]

they wouldn't necessarily buy this ETF, although it represents the underlying stocks.
 Quoting: markyb 47402853


Thanks for the link. You nailed the point home with the XLU chart. Like it for the more aggressive defensive players, and a straight up Treasury Bond ETF for less aggressive defensive players.
Anonymous Coward
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04/06/2014 08:20 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
Thank you again. May 2014 bring you good fortune.
markyb
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04/06/2014 08:23 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
if you can buy ETFs, Vanguard has a very low fee structure, and VDC represents consumer staples. Be careful with that one, there's been a bit of a runup and it's near the 52 week high.

Any equities scare me right now, you might just find a safe haven besides bonds, maybe a money market fund. Good luck, the big guys control so much of the market that by the time we see trouble coming they have already positioned themselves. If you have been able to capitalize on the last 5 year run, sitting on the sidelines won't hurt a bit right now.
Stock Trading Master  (OP)

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04/06/2014 08:24 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
Thank you again. May 2014 bring you good fortune.
 Quoting: Anonymous Coward 55489839


And you my friend.

headbang
Stock Trading Master  (OP)

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04/06/2014 08:30 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
Any equities scare me right now, you might just find a safe haven besides bonds, maybe a money market fund. Good luck, the big guys control so much of the market that by the time we see trouble coming they have already positioned themselves. If you have been able to capitalize on the last 5 year run, sitting on the sidelines won't hurt a bit right now.
 Quoting: markyb 47402853


Agreed. Treasury bonds are a good place to be right now with slow moving money and cash is always king. Good luck brother and stay safe.

Me So Broke
markyb
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04/06/2014 08:58 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
I am hunkered down, thanks

My mortgage broker told me four years ago that a lot of people and banks will be getting bailed out and others handed things , while the people that took less risk will only get a few gifts from QE, low mortgage rates and a rising stock market. Those benefits might have peaked for now.

Happy trading
markyb
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04/10/2014 03:15 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
uh-oh, I felt pretty strongly about sitting on cash for a while, didn't think that the market would get clobbered so quickly..

AC, were you able to move the funds into the safe zone?
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04/10/2014 04:18 PM
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Re: Institutional Traders Secretly Preparing For Stock Market Crash
bump





GLP