End of Day Buying
A trend that I have gone over a few times already that continues to dominate the market is the fact that institutions are stepping in and buying stocks in the last hour of trading.
There are a number of stocks that exhibited this, but take the Nasdaq for example.
Institutions do this to mask where theyβre rotating. But if you look at what transpires in the last hour, you can bet that the majority of the volume is coming from institutions.
Retail Selling
On the flip side of that, mornings and during the day we have seen stocks sell off and break key levels only to reverse later in the day. This is retail panicking and selling, only for their stock to be eaten up by institutions and for the market to move higher.
Look at NVDA for example.
We crack key levels and it looks like the stock is in free fall and the move is over, but itβs just not the case.
This is a trend that you can use to your advantage both as a day trader and swing trader. As you go into the market tomorrow and beyond, keep this in mind.
Retail is already in at low cost basis, so institutions buying are actually systematically every week just buying what retail's profit taking on. Big inflows Oct 18th so we're green once institutional buying kicked in by 0.5-2%