Maurice Greenberg Sells AIG Shares to UBS

This sort of transaction takes place in order to limit exposure to volatility, and that is exactly what Greenberg wants to do; limit his exposure to volatility in AIG's price. I started to wonder, what kind of volatility could we be looking at with AIG? Yes, the stock plummeted in the past, but it seems to have staged a nice little turnaround, which started in early February. After eclipsing its 10-, 20- and 50-day moving averages, the stock has advanced from the $22 region to as high as $38 earlier this month. What's more, the shares are perched atop their 10- and 20-week moving averages, so these trendlines could provide support if needed. I am sure that there has to be something that could cause some volatility in the shares going forward, right?

First things first, the short-term advance cannot overshadow the fact that AIG has taken investors on a turbulent ride since the beginning of 2008. Next, I went searching for some sign of what could have Greenberg running for volatility shelter. After scouring chart after chart, article after article, note after note, I think I found something (just kidding, I did find something but it happened as soon as I looked at AIG's monthly chart). I wonder if Greenberg is a bit spooked at the prospect of the stock running headlong into resistance from its 10-month moving average. This trendline has acted as a lodestone for AIG, pushing it away every time the stock tests the resistance. The last time AIG finished a month atop this resistance was back in October 2007. Maybe Maurice sees this resistance looming and feels that the stock is due to drop? Perhaps.