• 745 days Will The ECB Continue To Hike Rates?
  • 746 days Forbes: Aramco Remains Largest Company In The Middle East
  • 747 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,147 days Could Crypto Overtake Traditional Investment?
  • 1,152 days Americans Still Quitting Jobs At Record Pace
  • 1,154 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,157 days Is The Dollar Too Strong?
  • 1,157 days Big Tech Disappoints Investors on Earnings Calls
  • 1,158 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,160 days China Is Quietly Trying To Distance Itself From Russia
  • 1,160 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,164 days Crypto Investors Won Big In 2021
  • 1,164 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,165 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,167 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,168 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,171 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,172 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,172 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,174 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…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

Watch the Level of Institutional Investor Accumulation Now

Below are the Institutional Investor levels and trending for Accumulation/Distribution since last November.

The chart show's short term good news and medium term bad news. How so?

Well, if you look at the chart, you can see that Institutional Investors are in Accumulation and that it has been trending higher on a daily basis ... and that is good for the short term.

Now look at the two trend lines we drew from last November to last Friday. The trend line for the NYA Index is going up ... but when you look at the trend line for the Institutional Investor Accumulation levels, you can see that it is going down.


What does that mean?

It means that as the rally matures, Institutions have been cutting back their exposure to the market. The two different directions in the trend lines is also saying that there is a negative divergence between the actions of the market and Institutional investors.

If you have the feeling that Institutional Investors are not the "big guns" anymore and that they really don't impact the market, then take a minute to observe what happened to the market every time the Institutional trending shifted down on this chart.


What's the message from the chart?

Be ready for when the Institutional Accumulation/Distribution trend lines shift down because they will have a greater downside impact on the market the next time.

NYA (New York Stock Exchange Index)

 

Back to homepage

Leave a comment

Leave a comment