Institutional Selling

[Soultrader]

A week or two ago, MrPaul brought up an interesting chart comparing the major indices with the Insitutional Holdings Index. While the major indices were at new highs and a magnificent uptrend, the Insitutional Holdings Index showed a complete rangebound market. The original thread was posted on Feb. 17, 2007 here: http://www.traderslaboratory.com/for...alth-1214.html



This rangebound indicated that the insitutional funds were no longer buying. On top of this information, the major indices were showing high volume pullbacks with low volume rallies. A warning sign? Clearly. The charts were telling us that a potential top was in place with clear hints of a uptrend losing steam.




On Feb. 27, 2007 the Dow crashed 500pts along with the entire market. Now do we blame it on China and the Shanghai Index dropping 9% overnight? I dont think so. A smart trader/investor would of known what was to be expected. Alot of the traders in the trading chat room were fully aware of the potential top in place.

[MrPaul]

ST,

Thanks allot for the followup! I'm gonna keep an eye on that index over the next few weeks for sure

[keymoo]

Yes MrP, I have added that to my cash indices workspace in TradeStation.

[Soultrader]

Definitely a good index to be watching on the daily charts.

[MrPaul]

Check it...

Got it from Dr. Steenbargers blog

[walterw]

Is there any intraday data for this index.... ? would be interesting to see how it works... cheers Walter.

[walterw]

If its not to much work, could we see an actual daily chart of the Institutional Holding Index ? I think I dont have it on esignal... would apreciate that, also is it posible to see a 5 min chart of the same compared to YM 5min.... thanks in advance.... Walter.

[Soultrader]

Heres a daily and a 5min of the Insitutional Holding Index.

[walterw]

Any technical input to this swing hi pre 2/27 drop level ?

[notouch]

What exactly does the Insitutional Holdings Index measure? It has a very grand sounding name but that counts for nothing unless it measures something worthwhile. It's the nature of institutional traders not to make their positions available to the general public so I'd be surprised if any meaningful information was available just by looking at this index.