I borrow Cobra's chart from stocktiming.comWhen institution buying (blue line) crosses down institution selling (red line), market starts distribution. That cross-down happened yesterday. From March low 666, this situation only happened at wave (X) of primary wave [2], when market pulled back in June.
Is this another buy dip opportunity? CNBC and Cramer will tell you "Yes!", but not me.
forget about waving counting for a second, from a layman's point of view, institute buying falling overweighting selling certainly is not a good sign for retail investors like us. but my question is: how fast can the big players turn around? It is possible that they are temporarily taking profit right now and will come back later soon, with interest rate almost close to 0% where can they park their money?
ReplyDeleteThey borrow from Fed at 0% and then buy Treasury to earn 3% return. That is how they make money without any lending activities in the market.
ReplyDelete