Comments on: INSTITUTIONS TURN NEUTRAL ON THE RALLY, CONFIDENCE FADES http://pragcap.com/institutions-turn-neutral-on-the-rally-confidence-fades Sun, 12 Feb 2012 13:32:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: TPC http://pragcap.com/institutions-turn-neutral-on-the-rally-confidence-fades/comment-page-1#comment-9323 TPC Wed, 25 Nov 2009 00:31:11 +0000 http://pragcap.com/?p=13278#comment-9323 A move below 100 shows that institutions are no longer allocating capital to stocks. They were still allocating capital in stocks until this month. You might be reading the chart incorrectly. A move below 100 shows that institutions are no longer allocating capital to stocks. They were still allocating capital in stocks until this month. You might be reading the chart incorrectly.

]]> By: billw http://pragcap.com/institutions-turn-neutral-on-the-rally-confidence-fades/comment-page-1#comment-9322 billw Wed, 25 Nov 2009 00:27:55 +0000 http://pragcap.com/?p=13278#comment-9322 vsfvsl: The object of institutions and retail investors is to avoid major losses while still staying in rallies as long as the risk definitely outweighs the reward. Traders live by a different code, they are willing to follow trends longer trying to maximize returns. This of course means that traders are taking on more risk, and more risk means higher potential losses. We all like to point to the famous traders who followed that method and became rich. But the reason that they are famous is because the list is so short. vsfvsl:

The object of institutions and retail investors is to avoid major losses while still staying in rallies as long as the risk definitely outweighs the reward. Traders live by a different code, they are willing to follow trends longer trying to maximize returns. This of course means that traders are taking on more risk, and more risk means higher potential losses. We all like to point to the famous traders who followed that method and became rich. But the reason that they are famous is because the list is so short.

]]> By: vfsvfl http://pragcap.com/institutions-turn-neutral-on-the-rally-confidence-fades/comment-page-1#comment-9316 vfsvfl Tue, 24 Nov 2009 21:50:09 +0000 http://pragcap.com/?p=13278#comment-9316 Nobody would confuse me with a bull at this point, but if institutions de-allocated starting back in August, how is that bearish today? Likewise, pessimism in Asia does not scream "top" to my way of thinking. Insider selling has been hugely negative for many months now. This hardly seems like "news," let alone confirmation. Maybe if this graph went back to ~2Q08 it would be more illustrative of the overall point. Laying the S&P500 (or MSCI or whatever) over it could then tell the tale of any relevance to the whole blurb. Nobody would confuse me with a bull at this point, but if institutions de-allocated starting back in August, how is that bearish today?

Likewise, pessimism in Asia does not scream “top” to my way of thinking.

Insider selling has been hugely negative for many months now. This hardly seems like “news,” let alone confirmation.

Maybe if this graph went back to ~2Q08 it would be more illustrative of the overall point. Laying the S&P500 (or MSCI or whatever) over it could then tell the tale of any relevance to the whole blurb.

]]> By: SpiderTrader http://pragcap.com/institutions-turn-neutral-on-the-rally-confidence-fades/comment-page-1#comment-9309 SpiderTrader Tue, 24 Nov 2009 17:30:14 +0000 http://pragcap.com/?p=13278#comment-9309 Looks like following this data over the last year would have banked some serious coin. I hope you'll keep us updated on this indicator. Looks like following this data over the last year would have banked some serious coin. I hope you’ll keep us updated on this indicator.

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