What's are the Most Important Questions You Should Ask About Today's Market?

By: Marty Chenard | Fri, Apr 12, 2013
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Question #1: Is there a group of investors that "control the direction" of the stock market?

The answer is yes, and they are a group that own over half of all the stocks. They are not HFTs (High Frequency Traders), and they hold the stocks for appreciation for their underlying customer base.

Who are they? They are classified as "Institutional Investors". Due to the clout they have in the market, you always want to be trading in the same direction they are trading in and never against them.

How do you know what direction Institutional Traders are trading in?

They are only 4 different possibilities they can exhibit and they are:

  1. In Accumulation with Accumulation in an up trend. (Increasing Accumulation and Buying ... this is when you want to be buying.)

  2. In Accumulation with Accumulation in a down trend. (Decreasing Accumulation and/or profit taking ... since Institutional Investors are decreasing their exposure, it would be good to do the same.)

  3. In Distribution with Distribution in a down trend. (Increased Selling while aggressively decreasing exposure in holdings ... here is where you want to move to cash (or possibly go short if the market is in a down trend).

  4. In Distribution with Distribution in an up trend. (Selling, but decreasing the rate of selling which could shift to Accumulation if the trend continues ... here is where you want to get your shopping list together and be ready to buy if the trending is getting close to Accumulation.)

Where can one find this kind of information?

Obviously, this is very important information, which is why we post the data in these chart Sections for our subscribers each day:

What is the second most Important Question that investors should be asking?

This question will be identified and answered on Monday, so please come back and join us then when we will:

So, please join us on Monday when we have this important discussion.



Marty Chenard

Author: Marty Chenard

Marty Chenard
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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