Safehaven | Watch What Institutional Investors are Doing

October 22, 2009

Watch What Institutional Investors are Doing
by Marty Chenard

As an analytical firm, we pay for a lot of special data that the public can't get. Sometimes, the data is of major importance relative to what is going on in the stock market.

One such piece of data has to do with what Institutional Investors are doing. We all know that they are responsible for over 50% of any given day's volume ... which is why following this investment group is so important.

So today, let me share some of that data with you today. The data we will share is the daily "Institutional Selling Action". Every night, we take the data and feed it into a trending model chart that shows us the direction and trend of the Institutional Selling behavior.

This year's July to October chart is below, and by looking at the trend changes, you can see that the NYA (New York Stock Exchange Index) moved up or down in direct correlation with Institutional Selling activities. Note that yesterday, Institutional Selling was close to starting an Inverted down trend which would correlate with to the NYA and the market moving down. (If the pink data bar moves down lower today, then the odds of a down trend will increase substantially now.)

Notes about the Inverted Institutional Selling chart:
[Note 1: The data is "inverted" so that it will directly track with the movement of the stock market. For that reason, when the inverted data trends "down" on this graph, you will notice that the numbers get larger instead of smaller.
Note 2: This data is posted every morning as part of the Multi-I model chart on our paid subscriber site. It can be found on the last chart at the bottom of Section 3.]

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

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