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A Green Close on S&P 500, or Nine Billion in Monetized Debt

|Includes: FAS, Direxion Daily Financial Bear 3x Shares ETF (FAZ), SPY, UUP, XLF

A miracle on Wall Street, or just another bailout-style sham? The S&P 500 found a way to rally (almost green, but not quite) at exactly 2PM EST to somehow, someway, beat some of the most negative cumulative inflow of news to hit the world since the Great Depression. Furthermore, on a less surprising note, we are quickly approaching the 30th week of cumulative mutual fund outflows — well, atleast now we can be sure that the Banks will be eating each other’s profits, rather than our own.

Yes folks, today,  a total of $9 billion of debt was monetized by the wonderful, cheerful crooks that run this country, the Fed. Of course, none of this money goes to improving the health of the economy through job creation, taxation and incentives, no, no, it is money used by the primary dealers to levitate stocks to a green close — i.e. helping the rich get richer, and the poor get poorer. Not only that, but it was a DOUBLE POMO day, $2.5M used in the first hour, with the rest in the last two hours of trading.

Still wondering how many more months the taxpayers will go before hitting the streets, hands full of torches and axes?

The good news: insider sales of S&P stocks were only 218 times greater than insider purchases. This is a notable improvement from last week’s nearly 9,000x ratio. The bad news: the ratio was skewed by what is probably the biggest insider purchase in the past 6 months: someone bought 542,198 shares of Citi at $4.30 (hopefully not a short cover). Take that out and things get sad again. The worst news: insider selling, in total notional continues to trend ever higher, and while better than last week’s $1.2 billion, this week’s $757 million in sales is a top 5 dump when looking at the last 24 weeks of insider action. Adding to this the fact that this week will see the 30th consecutive outflow from domestic equity funds (absent Mary Schapiro, Tim Geithner, and Ben Bernanke resigning of course), and the confidence game continues.

Disclosure: Long FAZ