reading institutions

Discussion in 'Stocks' started by pjhaggerty, Sep 3, 2009.

  1. Hi all

    I'm new to trading. However, as I understand it right now, institutional money moves the markets. This is fairly obvious, as they are the big money. My question is, how do you tell what the institutions are doing? Obviously, this is a complex question with a complex answer that is not always going to be right.

    But I also understand that there are certain tell-tale signs that an institution is doing something with a stock, especially with lesser traded stocks. for example, if one stock in an industry is going up while the market and the industry group is sideways or a little down, that's a sign that somebody is buying, I believe.

    I also understand it takes an institution a long time to get in and out of a stock, as they have so much stock they need to move. I heard it could take weeks to get fully out of a position or fully into a position.

    Are there any books out there that could explain this type of thing in more detail? Are there any traders on here familiar with these phenomenon? Are there any institutional traders here? Thanks for letting me know what you know :)

    Patrick
     
  2. Calpers bought a couple cases of Sham Wow.

    Now I'm supposed to make a logical deduction of smart money.
     
  3. NoDoji

    NoDoji

    Sometimes it doesn't take long at all. Take a look at AMED's chart between yesterday and today to see the footprint left behind when institutions want out right now.

    I'm curious about the logistics behind the dreaded "gap" when you're an institutional holder. How does a huge position get unwound quickly?