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Tackle Today: Institutions Don’t Buy; They Accumulate.

March 24, 2021

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This is how to spot the big money

Traders,

Yesterday we learned that institutions are elephants. High volume sessions reveal them moving about. But how do you know if they’re buying or selling?

Prices tell the tale.

If prices rise on above-average volume, then institutions are buying. This is intuitive. If the big boys were unloading their wares, do you really think prices would be rising?

High volume up days have bullish implications for the simple fact that institutions don’t buy, they accumulate. Buying is an event. It’s something that the little guys (the flies) do all the time. They’re moving greenbacks by the thousands – not millions or billions.

Accumulation is a process. The elephants are investing big bucks. They’re so big that they must be careful. Do you think they’re going to place a buy market order for $500 million worth of stock? Probably not. Because flooding the market with that much demand would single-handedly jam the price higher.

Instead, they buy over time. In other words, they accumulate. That means if they’re starting to buy, they may continue to buy. High volume up days indicate the stock could be under institutional accumulation. If true, this force should continue to propel prices higher.

#TeamTackle


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