Updated: What Institutional Investors Are Doing Now
It is Friday, and I decided to make this a free member courtesy day again today.
Last Friday, we showed and discussed the daily Net of the Institutional Buying and Selling activity.
Below is a recap of that discussion, FOLLOWED by two charts. The SECOND chart is the updated chart as of the close yesterday:
Why is the "Net" important? Because it is just like your checking account. If money is going in faster than the outgo, then you have a nice positive balance. However, if the amount of money flowing out is faster than the amount coming in, then you are drawing down your account and it will eventually go to a negative balance if you don't curtail your spending in time.
So the Net Accumulation/Distribution chart behaves the same way. Check out the chart below ... on May 21st., the trend lines on the Institutional Accumulation merged and that was the peak close during the past week. (The next day, the Accumulation started a down trend which meant that Institutions were continuously decreasing their daily buying.)
That left the buying from retail investors to keep the market up by themselves. Since Institutional Investors own over half of all the stocks, that is a pretty tall order for the small guy.
(FYI: Some subscribers are enamored by the Institutional Accumulation/Distribution trending and use the trending information as the basis for their buying and selling signals because they have learned that going against the big Institutional Investors usually gets them into trouble ... the chart is posted and updated daily on the Standard subscriber site.)
This chart show's the change (as of yesterday) on the trend of Institutional Selling and the market's reaction.