Equity fund flows are negative but stocks keep going up. Does selling cause prices to drop, or is there a way for the overnight prices to just rise anyway? Or who is buying? The data can't be wrong.
Big players who have the fund to support can hold the price from sliding. E.g. I remembered seeing a huge buy order just below the IPO price on the first day of trade. Why price drop? There is no bid at that price. Either there is no big players to support it at that price or big players clean up all the bids at that price. After all, institution investors own most of the shares.
fund flows negative means the average investors are selling! this is expected as the price moves up... the crowd is very comfortable in 'buy low sell high'. who is buying? the smart money - central banks, corporations. and my pro boys.
That is my only logical conclusion too, but then other statistics tell me that 60% are in passive funds and 20% are in quant funds. And I don't see a lot of new brokerage accounts being opened. Is there a way that the big funds can sell to the mom and pop without the price going down?
Read about accumulation, distribution and market manipulation jajaja the prices move with the supply and demand, soo yes the selling pressure makes the price fall (When in the market is not buying pressure).
Read Livermore he talks about how he would set up the market to go up when he wanted to sell. You'll never trust anything you hear afterwards.
Btw if anyone knows of any other books that talk about the manipulation part of things, a referral would be great.