Money managers and institutional traders are secretly preparing for a stock market crash according to a chart published by John Murphy on Saturday, April 5, 2014.

The shocking chart above shows institutional traders and money managers (which make up 75% of all market action on any given day), taking money out of consumer discretionary stocks and putting it into defensive stocks.

How could this be happening? I've heard institutional traders and money managers do nothing but praise the stock market and economy. They have made bold predictions about how 2014 is going to be another great year for the stock market just like 2013 was.

Institutional traders and money managers are giant beasts. They have to enter a position early, before average traders like you and me. They also have to exit before everyone else.

Money managers need the average investor to provide the liquidity they need to exit their positions: it takes a buyer for a sell order to process. It takes a seller for a buy order to process. What better way for money managers to exit their positions in consumer discretionary stocks than to get lots of amateur traders to buy into that sector?

The even bigger question is what does this have to say about how Wall Street insiders REALLY view the U.S. economy? Consumer discretionary stocks are a future read on the direction of the entire U.S. economy.

Source: http://www.guerillastocktrading.com/stock-market/institutional-trad...