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The Amex Institutional Index is completely different from the Institutional Holdings Index. Both of them are sort of interesting but they don't really tell us what "big brother" is up to. Google, for example, is in the Institutional Holdings Index but is also very popular with retail investors. So if retail investors started dumping their Google stocks this would have a negative impact on the Institutional Holdings Index but the institutions could be buying what retail is selling. Also we don't know who these "institutions" are. They probably include pension and mutual funds who are usually classified as "dumb money". Trading syndicates on the other hand are not institutions even though they are definitely smart money. |
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XII.X is the symbol used in this thread, happens to be the Amex Institutional Index, how can we determine what is smart money can become a very subjective topic and beyond this thread spirit, the divergence shown before the 2/27 fall was clear... If its smart, dumb, idiot money I dont know... but its clear that the "institutional" sector was not bullish anymore on does dates previous to the fall.... I dont think this indexes are there for nothing, they have been built to be monitored, Notouch : If you dont believe in them, just dont use them... simple, like any other techniques been thought here, it is a little faith sometimes what puts you in action, being so pesimistic will keep you on a closed actitude too some things that can be of very good help...
cheers Walter.