• 1,207 days Will The ECB Continue To Hike Rates?
  • 1,207 days Forbes: Aramco Remains Largest Company In The Middle East
  • 1,209 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,609 days Could Crypto Overtake Traditional Investment?
  • 1,614 days Americans Still Quitting Jobs At Record Pace
  • 1,616 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,619 days Is The Dollar Too Strong?
  • 1,619 days Big Tech Disappoints Investors on Earnings Calls
  • 1,620 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,621 days China Is Quietly Trying To Distance Itself From Russia
  • 1,622 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,626 days Crypto Investors Won Big In 2021
  • 1,626 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,627 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,629 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,630 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,633 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,634 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,634 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,636 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Follow What Institutional Investors are Doing

This will be a day where we share one of our paid subscriber charts as a courtesy to our free members.

What's the chart? It is a chart that shows the Net of Institutional Investor Buying and Selling activity on a daily basis. If there is more Institutional buying than selling, then they are in Accumulation and seeing that they are the biggest players in the market, then the market will go up. The opposite holds true when they are selling more than they are buying.

On November 25th, the Institutional Investors showed a bottom on their Distribution. Note how Institutional Accumulation has shown a good positive level of Accumulation since December.

A good philosophy might revolve around the following... Institutional Investors spend "millions and millions" of Dollars on research, computer trading programs,and expert traders. They own over 50% of all the market Dollars invested, so they are a formidable force in the market.

Also note that while the Institutional Accumulation is positive, its trend lines show its second "lower/low" since January 31st. What does that mean? It means that there is a down trend in Accumulation, and that means that as the market moves higher and higher, Institutions have been slowly taking some profits and lowering their exposure.

Anyway's, what's the Philosophy?

Since Institutional Investors spend a LOT more money on research... a lot more than most anyone else can afford, why not follow what they do? "What they do" is a conscious decision after they have analyzed all their expensive research and data. Following what they do is akin to knowing what they know for a very small price.

 

Back to homepage

Leave a comment

Leave a comment