📈 Institutional Buying

This is where institutions are putting their money.

Watch these Sectors

It’s important, especially in choppy, difficult markets like we are experiencing right now, to understand which sectors are rising and which sectors are falling.

The majority of the money invested into the stock markets comes from institutions, so this is a clear indicator of where they are placing their bets right now.

When you stack up the indexes, you can see that institutions are risk on. They’re buying Bitcoin. They’re buying tech and semiconductors. This is a shift from the week prior where defensive names were being bought.

This is a bullish sign for the market, but doesn’t necessarily mean that we are going to go straight up. However it should give you optimism that institutions are back to buying the names that are bought when we see strength - tech is leading the way.

That is also evidenced by SPY outperforming RSP. RSP is the equal weight index of the S&P. The S&P is more heavily weighted in tech, so its outperformance signals that tech is leading.

I explain in more detail what this means for the market here: