Live Update

Tuesday, May 19, 2009

Institutional Buying and Selling Trending

Special post: After Monday’s big surge, let’s take a look at what the institutional accumulation and distribution looks like. (courtesy of Have a good day!



  1. thanks for posting the chart

  2. For future reference, where can I go to see an up-to-date chart like this for institutional trading numbers? Do I just subscribe to the updates at the link posted?

  3. Yes, you have to subscribe from

  4. Cobra,
    I hoped you would post this. Thanks!
    This worries me, the above chart shows convincingly that institutions are scaling back buying. Also, the sentiment and trend following indicators gave a clear sell signals, yet markets refuse to go down. Even today, markets creep up with terrible housing news and dropping TICK and NYADV.
    This is either like June 2007 when selloff was delayed for 1-2 months due to super bullishness of the late cycle or like mid 2003 when there was a consolidation but not a good selloff due to a recovery and a spike in inflation.
    The more I think about it the more I'm convinced it's inflation rising all boats. This is why energy is rallying so hard.
    Looks like shorting at this point could be dangerous.

  5. Don't understand why the market goes up today based on bad housing number. I would have expected a pull back today particular after the unexpected bad housing number that surprises the market. Again today's volume continues to be light. This market seems to be built on a lot of manipulation and lies. Does TA really work when market is built on such huge manipulation?

  6. ...It takes a while for the bulls to exhaust themselves, especially after the buying orgy that took place since SP 666.

    Also, the institutions don't just step in and crush every rally. They sell into it gently... Gently... : p

  7. Yeah, guys, I just wanted to show you that institutions didn't attend the yesterday's rally. I'll show you again this chart (updated with today's data of course) tomorrow monrning.

  8. Yeah that makes sense since volume was reallly low yesterday.

  9. So how would you characterize the Mon rally? Dumb money or retail buying?

  10. I think most were retail buying.

  11. Retail buying is not exactly a good sign either is it? Is it generally:

    institution > retail > dumb money?

    Also, the particular chart can certainly be misleading as there was a false signal at the end of 2008 it seems...

  12. Any indicator could be misleading now and then. It's up to ourselves to squeeze the true story out of them.




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