Wall Street Smart Money buying: Mass, Dumb Money selling

Wall Street Smart Money buying

[color-box color=”red”]Pay attention to the overall trend. The markets are selling off on low volume in general and rallying on higher volume. Pay attention to the Up volume as this provides you with even more information. The surge in up volume tells you how intense the buying is. On Thursday, Jan 14th the markets rallied strongly. Up volume on the NYSE swelled to a whopping 428% and sold of the following day Jan 15th on low volume.  We are providing an extensive list of data to illustrate how in general it is the masses that are letting their emotions do the talking and selling when they should be buying. Mass psychology states that you should be nervous when the masses are Joyous and Joyous when the panic. They are in panic mode right now. [/color-box]

Wall Street Smart Money buying: Mass, Dumb Money selling

On the 20th of Jan, the Dow shed 250 plus points, but the volume on the NYSE did not even make it to the 3 billion mark.

Up and Down volume for Jan 20, 2016J

Markets closed on a positive note on Jan 22nd and volume soared once again.  If you look at the history, you can see that in general someone is buying the dip and this someone is most likely the smart money.  Look at up volume it soared by a massive 704% on the NYSE.

Total NYSE volume for Jan 22, 2016

Friday Jan 29, was the only day where volume dried on an up day, but to be fair the volume on Thursday, Jan 28 was a down day, volume was not that high either.  Down testing of the lows is most likelyAdvancing and declining issues for Jan 29, 2016

Volume surged once again on Feb 15th, indicating that the smart money once again is buying the dip and not selling into strength as the Naysayers and Doctors of doom would have you believe.  UP volume surged a whopping 1,035%

Total market volume for Feb 15, 2016 .

The evidence is clear rather than selling into strength the smart money is buying on the dip, while the masses panic and dump most of their holdings at rock bottom prices. This is history repeating itself or ground hogs day in real life, the game plan never changes, the masses always run for cover when the going appears to be getting tough and the smart money always comes in and scoops up gems for next to nothing.

Game plan

Make a list of stocks and Use strong pullback to open new positions in companies that  have strong quarterly earnings and revenue growth rates.

Other articles of interest:

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Next American Disaster is Student Debt  (Feb 12)

Central bankers embrace Negative interest rate wars (Feb 10)

Gluttonous colleges fueling higher education bubble (Feb 8)