Safehaven | Are Institutional Investors Selling or Buying?

October 13, 2009

Are Institutional Investors Selling or Buying?
by Marty Chenard

Are Institutional Investors taking profits?

Today's study shows the "net" daily amount of daily Buying and Selling for Institutional Investors. The green bars show the daily net calculation by subtracting the amount of Selling from the amount of Buying.

If the net is positive (more buying than selling), then Institutions are in Accumulation. If the net is negative (more selling than buying) then Institutions are in Distribution. Professional investors never go "against" what the Institutional Investors are doing because Institutions control over 50% of the daily volume in the stock market.

So, are Institutional Investors in Accumulation or Distribution now?

The answer is that they are currently in Accumulation.

Is the current Accumulation trending up or down?

The answer is: Down. If you look at today's chart, you can see that Institutional Accumulation has been making lower/highs and lower/lows. That is the definition of a down trend. That down trend went to a Distribution condition for 5 trading days during the October 1 to October 7 period of time. The peak Distribution day was October 2nd, after which Distribution started abating.

So, even though we are back into Accumulation, the Accumulation is "down trending" indicating that Institutional Investors are selling into the rally. If the down trend continues, then logically, the next Institutional selling spurt would have a lower/low with a negative impact on the market. (Today's Institutional Buying/Selling chart is presented as a courtesy to our Free Members today. This chart is posted every day on our paid subscriber site.)

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Marty Chenard
StockTiming.com
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Tel: 828-296-1200

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