• 658 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,060 days Could Crypto Overtake Traditional Investment?
  • 1,065 days Americans Still Quitting Jobs At Record Pace
  • 1,067 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,070 days Is The Dollar Too Strong?
  • 1,070 days Big Tech Disappoints Investors on Earnings Calls
  • 1,071 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,073 days China Is Quietly Trying To Distance Itself From Russia
  • 1,073 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,077 days Crypto Investors Won Big In 2021
  • 1,077 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,078 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,081 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,084 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,085 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,085 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,087 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Is an Institutional Investor Smoke Alarm Going Off Now?

Why do people have smoke alarms in their house?

Obviously, it is to warn them that there could be a fire, a fire developing, or sometimes it just means you burnt the toast.

In any case, you at least check it out and find the culprit. If it is burnt toast, you fix the problem and move on. If turns out to be a "potential" fire situation, you take a cautious stance.

This is courtesy day ... a day where we share one of our paid subscriber charts for free members.

Today's chart involves the analysis of what is happening between the VIX and what Institutional Investors have been doing since February 13th.

First, you understand how the VIX works ... a higher VIX signifies higher fear levels and the market typically moves down. A lower VIX signifies higher confidence (or sometimes complacency), and the market moves up.

So what has happened to the VIX since February 13th? Today's chart provides the answer. The VIX (volatility index) moved down and the market moved higher.

But, a smoke alarm may be going off? Why? Because of what the Institutional Investors have been doing relative to buying and selling since then. As this chart show's, the Institutional Buying went down, and the Institutional Selling went up.

That is the opposite of what you would expect for a market moving up. Apparently Institutional Investors are getting nervous and reducing their exposure. They are still in Accumulation so things are still okay at this moment ... but a smoke alarm is going off in the background.

VIX - Volatility Index

 

Back to homepage

Leave a comment

Leave a comment