• 518 days Will The ECB Continue To Hike Rates?
  • 519 days Forbes: Aramco Remains Largest Company In The Middle East
  • 520 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 920 days Could Crypto Overtake Traditional Investment?
  • 925 days Americans Still Quitting Jobs At Record Pace
  • 927 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 930 days Is The Dollar Too Strong?
  • 930 days Big Tech Disappoints Investors on Earnings Calls
  • 931 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 933 days China Is Quietly Trying To Distance Itself From Russia
  • 933 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 937 days Crypto Investors Won Big In 2021
  • 937 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 938 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 940 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 941 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 944 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 945 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 945 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 947 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Ignoring This Direct Correlation Will Cause Pain or Losses

There is a direct correlation between the stock market does and what Institutional Investors do here ...


A direct correlation with what???

The answer is that "there is a direct correlation with the Selling Activity of Institutional Investors and what the market does. To go against what Institutional Investors are doing usually means pain and losses for individual investors.

For example, today's chart show's the daily Institutional Investor Selling Activity compared to the stock market. Spend a few minutes and note how the movement of the New York Stock Exchange has a direct correlation with the movement of the Institutional Selling graph at the bottom of the chart. (Realize that there is an inverse relationship between the Institutional Selling and the market's movement. It is common sense ... if the selling goes down, the market goes up. If the selling goes up, the market moves down.

But that is not the reason we are showing you the chart today. The reason has to do with what kind of Selling Institutional Investors have done for the past 7 days.

If you look at the chart, the trend has been sideways for 7 days. No up trend or down trend in selling activity. This means Institutional Investors have a Neutral stance and that they are waiting for the outcome of some kind of news or event before a new trend starts in their selling or lack thereof. So, given the above, this is an alert condition for investors. (Reference: This chart is posted and updated every day in Section 3 Chart 1 of the Standard subscriber site.)

NYA Index

 

Back to homepage

Leave a comment

Leave a comment