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Friday, July 24, 2009

07/24/2009 Institutional Buying and Selling Trending

Institutional Buying and Selling Trending from

The first chart is the most recent one including yesterday’s no so impressive accumulation.


The 2nd chart shows a longer history, someone on my Chinese forum stitched the past charts all together.


The purpose of showing these 2 charts is that I want you to pay attention to the near “chart wise” record low distribution at around 5,000. Don’t know what will happen if the distribution hits the record low.


  1. Cobra, just would like to let you know I left you a email regarding ISEE.


  2. Cobra, thanks for posting these 2 charts, which are invaluable! The recent market action is supported by the upper chart that there is an increase in accumulation (though small) and more more noticeable decrease in distribution. I notice though market bottom tend tends to align with "peak" distribution and "bottom" tends to align with market top. How would you interpret the institutional buying/selling data? Thanks again for your help. Richard

  3. That's why I said I don't know. I mentioned my chart 0.0.3, it argues for a top together with this chart. But the market seems invincible. When the signal confilicts with the market real actions, I'll trade very lightly.

  4. Look like the chart above suppose to say that market should turn down... but I guess not! Still going and going and going like an energizer bunny!

  5. No, the first chart says, the market should be up because institution is in accumulation. Just I don't know what would happen if the distribution hits to record low because in the past it looks like whenever the distribution hit low the market was topped.

  6. Hi Cobra,
    please share your point of view or your opinion on 2 questions i've been wanting to ask you.
    2 or 3 times on CNBC it's been said that we are in the 10th year of a secular bear and some are suggesting 18 more years will follow....
    the second pic shows a quarterly chart and a yearly chart for the last 19 years.... my question is (1) how important are charts? (2) and does the nedgative MACD divergence have any ability to predict the future???
    monthly charts also have the same negative MACD divergence but i don't know if this is important or not....

  7. Bill, it's the sad nature of the TA: sometimes it works, sometimes it doesn't. So MACD divergence, may or may not work. Also these are long-term chart, I don't think we can trade based on such a long term chart, espeically if you're a bear.

  8. Cobra, I think the quote again is wrong on both the QQQQ and SPY again?! Because they are way off from where they actually close right? Or am I wrong?

  9. On the daily charts for the SPY, the RSI and Slow Stochastics are at insane levels. I've never seen them so ridiculously pinned in the overbought, the slow signal is about to hit the fast signal which is pinned near 100. In fact SPY and QQQQ are all pinned to the high. I didn't want to short, but the oscillators were simply unignorable. Do you think my analysis is too primitive and basic?

  10. Actually I just relooked at the RSI on the daily SPY chart, it appears to only be about 72... ugh, my system at work showed it was 86. Maybe I made a mistake?



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