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Institutions Laugh: Small Investors Lose Again, Unreal

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June 05, 2013 – Comments (4) | RELATED TICKERS: SPY , GS , DIA

The stock market is taking a beating today as money runs for the exits. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is trading at $161.51, -2.05 (-1.26%). The signals were there as the big institutions unloaded. Most average investors missed the signals because they are not educated in market related analysis. I will explain it all and show how you knew this sell off was coming. It is ridiculously easy.

 

The signal occurred exactly three weeks ago today. On Wednesday, May 22nd, 2013 the markets surged higher in early morning trading. By mid-morning, a major reversal had started. The markets went from being up over 1% on the day to being down over 1% on the day.

 

The reversal by itself does not tell us a major turn has hit the stock market. The key was the volume. On that day, the SPY traded 250 million shares, the biggest volume day in all of 2013. To give you a sense, the average volume on the SPY is 125 million. In other words, we saw double the volume on a major reversal day, coming at the all time highs on the market. Checkmate!

 

Anytime you see these signals, it is very logical to move out of all long positions and start going short the market. The volume signals institutional dumping in excess. In the big boys are dumping, you would be wise to sell as well. Most average investors continue to buy the dip, thinking the markets will go up every day. They are taking a beating as every bounce is now a selling opportunity.

 

So many investors fall on the wrong side of the market. They are duped by the media and institutions. In fact just before this market dip, David Tepper emerged, calling for another major move up in stocks. In addition, days later Goldman Sachs Group, Inc. (NYSE:GS) upgraded their price targets on the S&P 500. It is sad because small investors buy when these widely 'trusted' players say buy. When these calls emerged, I alerted investors to sell into it as that is likely what those two big players were doing it. We shorted the market. Profits are flowing.

 

Gareth Soloway

InTheMoneyStocks.com

 

 

4 Comments – Post Your Own

#1) On June 05, 2013 at 7:34 PM, awallejr (83.83) wrote:

We shorted the market. Profits are flowing.

Finally you acknowledge your agenda.  The tricky thing with timing, when you are right it is great.  When you are wrong, it sucks.  So for the months of April and May, you must have taken a bath shorting.

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#2) On June 06, 2013 at 10:22 AM, L0RDZ (84.37) wrote:

Awall G and  his  other  boy  are not  credible,  he's nothing  more  than  a  broke  looking  farmer pimp  with  no  hoe's  trying  to  come  off  as  something he isn't.

Dude has  no  score  and  is  only  looking  for  free  publicity.

He's  trying to  get  fools  to pay him for  telling  you  things after the fact.

I forget  the  name  of his other  boy,  but  they are  irrelevant.

If he  had  any  balls he'd  at  least  try  to  play  the game  so  we could  laugh  at  his  calls instead of  just laughing  at   the lack  of them.

 

 

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#3) On June 06, 2013 at 11:09 AM, awallejr (83.83) wrote:

I know, but I often feel compelled to call him out as a forewarning to other readers, although sometimes he does make good points.

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#4) On June 06, 2013 at 11:33 AM, L0RDZ (84.37) wrote:

Watch  Awall   when  the  market  returns  his  or  his  boys  next  post  will  be  about  how he timed  it  so  perfectly  or  some other  phoney baloney  sH!Teeee.

Or how  he recommended  something  he  didn't. Or  taking  credit  for  something  he had nothing to do with or  had  the  wrong  hypothesis  but  got  lucky  in other  factors  making  his  post  seem  credible.

It  reminds me of   the  line  in   showgirls where  they  take  the  asian  high rollers  to that  strip  club   and   the  one  asian  says  to  the  other  that he loves  America  because  everybody  in  America is   a gynecologist ( based upon  the  women showing  everyone  their  private parts).

In  the  money stocks  are like  that  asian sailor in  the movie  1941  who  thinks  that   lighted  ferris  wheel  is   the  hollywood  sign  and keeps  yelling  in  an   asian  accent   WHO  LEEE   WOOD...

http://en.wikipedia.org/wiki/1941_(film)

http://www.youtube.com/watch?v=nx_PI_lknW0

http://www.youtube.com/watch?v=RmLAA2r4DlA

 

 

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