Short Term Trading Member Forum

[stkboy1]

http://www.stocktiming.com/Tuesday-DailyMarketUpdate.htm

Are Institutional Investors in Accumulation or Distribution?

Today, we will share another private subscriber chart that show's the net condition of Institutional Investors ... that is whether they are in Accumulation or Distribution.

In the chart below ... Above the horizontal line is Accumulation and below it is Distribution. So, as you can see on the chart, Institutional Investors are in Accumulation. There was a short period at the beginning of March that Institutions went to Distribution briefly, but quickly went back to Accumulation. Given that they own over 50% of the stocks, they still have the biggest influence over what the market does or can do.

If there was a negative to point out on today's chart, it would be that a negative divergence is appearing. Basically, as the rally matures and moves higher, the level of Accumulation has decreased as you can see, therefore it is negatively divergent.

But, that is what Institutions do ... they load up before the move, and lessen their exposure (taking selective profits) as the rally matures. The concern about negative divergences, is they tell you that a market condition may be getting closer to a directional change.

*** Click on the link below this chart if you would like to send a page link of today's update to a friend or colleague.