Insitutional Buying and Selling
What is the best way to determine when institutions are buying and selling (in real time - to the extent that its possible)?
Is it by tracking buy and sell volume and comparing to historical averages? is there a percent above average volume that would indicated institutional sellers/buyers?
thanks
YES! I like to see a stock advancing 8% (at least) or more with 300% above its average daily volume.
We saw that with many stocks last year, and they went on to make nice gains. Of course, the growth stocks ran into heavy selling in November. I would not be buying anything while the index is below the 200sma though.
PANW Broke out on August 24 with 854% above its average daily volume. It was up 18% on that day, and continued to advance for a nice gain.TEAM That stock broke out with 398% above its average daily volume. It was up 22% on that day and advance in the subsequent days/weeks. On October 29 it was up 9% with 187% above average daily volume. It closed in the lower half of its daily range that day, and acted sluggish. It sliced its 50sma a few weeks later.
AFRM That stock gapped on August 30 with 1,096& above its average daily volume and September 10 with 886% above its average daily volume.
The thought process behind buying into moves like these is that we know institutions are buying the stock. When an institution wants to build a position they do not do it all at once. They buy over weeks, months and even years in some cases. We want to follow the institutions into these stocks making explosive moves.
We will see activity again like this or even stronger in the future. But, right now the institutions are selling their stock and we must get out of their way.
I hope this answers your question!
Regards,
Marty