Posts filed under “Technical Analysis”

Watch the Block Trades

While the S&P 500 ETF (SPY) has inched towards multi-year highs, block money flow — a gauge of net institutional buying and selling activity — has fallen off a cliff since mid-January , suggesting the U.S. equity market is on shaky ground.

>
click for larger chart
Spymoneyflow
Source:  Mike Panzner, Rabo Securities USA

>

I would add that unless institutions come crashing back in, this is yet another data point that confirms the topping process . . .

>

 

UPDATE:  March 17, 2006 5:42am

Its not the raw fall off in block trades that is revealing, but rather, the divergence versus the market direction that is significant.

Why? Block trades may reveal what is driving the market in a given rally. Is it Institutional Buying, which tends to be measured and longer lasting as buyers scale in over time.  Or, is it retail investors?

Institutional buyers tend to be part of longer lasting trends . . .

Category: Investing, Markets, Technical Analysis

Bad Moon Arising

Category: Economy, Investing, Markets, Psychology, Technical Analysis, Trading

Chart of the Week: P/E Ratio: Cyclical Expansion and Contraction

Category: Technical Analysis

Qs Short Interest

Category: Markets, Technical Analysis, Trading

Understanding Fibonacci’s Relative Retracement

Category: Technical Analysis

10 Year Yield Makes a Run for 5%

Category: Fixed Income/Interest Rates, Markets, Technical Analysis

Why the Short Term Upside Bias?

Category: Investing, Technical Analysis, Trading

Get Darwinian on Your Portfolio!

Category: Economy, Investing, Markets, Technical Analysis, Trading

Loaded for Bear: Walter Deemer Interview

Category: Markets, Psychology, Technical Analysis

Part II — Q&A: Paul Desmond of Lowry’s Reports

Category: Investing, Markets, Psychology, Technical Analysis