A mixed day with the Dow Jones up 37 points (+0.11%) and the Nasdaq down 144 points (-1.38%).

This chart says quite a lot….

Big institutional investors ​are buying ​while retail investors are dumping stock funds and ETFs. That’s bullish for the market.

The chart above summarizes the data, courtesy of EPFR-TrimTabs. Over the 12 months through the end of November 2022, during which the Vanguard Total Stock Market ETF VTI, -0.42% lost 11.3% and the Nasdaq Composite Index COMP, -6.67% lost 26.2%, institutional investors poured a net $408.6 billion into U.S. equity funds. Meanwhile, net outflows from retail investors, in contrast, totaled $310.1 billion. Winston Chua, an analyst at EPFR-Trim Tabs, said in an email that “it is a longer-term positive” that institutions are exhibiting confidence in equities.

This is just one indicator showing that smart money is rather more bullish than bearish. Yet, combined with others, for instance the Put/Call Ratio, a more clear picture emerges. 

Having said that, you can just as easily find the same number of indicators pointing in the opposite direction. 

Trying to make money based on bullish/bearish patterns or various indicators is incredibly hard. Our mathematical and timing work is not. It clearly shows what the stock market will do in both price and time over the next few months. If you would like to see, please Click Here.