Net of Institutional Investor Buying and Selling Activity
Tuesday, February 21st. 2012
This chart 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.
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