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Institutions

CSCO Layoffs Positive for the StockNASDAQ:CSCO gapped up on its earnings report even though the company has failed to reinvent and failed to change to HyperAutomation in its IT departments quickly enough. News of layoffs is considered a positive action on the part of the officers of the corporation who are responsible first and foremost to INVESTORS and cutting costs so that the company can slowly regain revenues and earnings for dividends for INVESTORS. Delaying layoffs, which may be kind and thoughtful for employees, is a negative for INVESTORS, namely the giant Buy-Side Institutions, because it extends and worsens the financial condition of the company. As more and more companies buy robots/robotics and AI technology, these will reduce payroll expenses and help to control internal business inflation, which is caused mostly by rising payroll expenses with declining productivity from the workforce of the company. This is always misunderstood by retail groups who believe layoffs are a bad thing for the "economy." The world of commerce and the financial markets is not a fair or kind place.
NASDAQ:CSCO
by MarthaStokesCMT-TechniTrader
Bending Trends Can Warn of Institutional RotationThe Daily chart of NASDAQ:PANW shows a short term bend in the trend which is common when Giant Buy Side Institutions are in quiet rotation mode to lower inventory, attempting not to disturb price. Also, Volume Oscillators and Money Flow indicate selling hidden mostly in price that is being carefully controlled. The stock reports today. This doesn't mean that HFTs have this information nor does it mean that HFTs won't gap it up. It means IF you are holding this stock for a swing trade, risk has increased for a possible run or gap down.
NASDAQ:PANW
by MarthaStokesCMT-TechniTrader
IBM: A Risky Earnings TradeNYSE:IBM Reports after the market closes today. It is probably at or near its fundamental levels even if the report is weak. The chart shows a strong support level as the stock price is at the neck of the bottom completion level. IBM is in a long term trading range when viewed on a long term trend. The problem is a weak CEO who has failed at reinvention and a stock that is pricey for its growth potential. However, it has more upside potential than downside. It would take a really negative report to create a strong run down. That is not likely. PSHI is very low so less savvy investors own almost half the outstanding shares. This means trading the earnings report is riskier.
NYSE:IBM
by MarthaStokesCMT-TechniTrader
GS Earnings and Institutional HoldingsNYSE:GS has had a sudden huge decline in its Institutional Holdings from last quarter--a whopping 12%. That's huge. This suggests that often the selling is from Buy-Side Institutions. Goldman Sachs has a buyback program of 30 billion dollars underway, approved end of February 2023. The Buybacks started in March and have continued until recently. I showed the buyback activity on the daily chart in this article earlier this month. The Support from corporate buybacks poses problems for selling short. The stock is also prone to HFT triggers with frequent gapping. The first Support level is just above the 2022 lows. The company reported earnings this morning and gapped down at open but is holding onto the sideways range it's been in for 2 weeks so far. However, Quarterly and Annual Reports are starting to show signs of weakness as this company struggles to reinvent. NYSE:GS is also facing loss of revenues from IPO underwriting as the NASDAQ Private Market is undermining the high income usually generated from IPOs by underwriters. IMO, the investment banking industry is slowly becoming obsolete as DeFi, Fintech, Blockchain technologies and Crypto currencies continue to advance and erode traditional revenue streams.
NYSE:GS
by MarthaStokesCMT-TechniTrader
META Layoffs: Good or Bad?Most people assume layoffs are going to drive the price of the stock down. NOPE, general consensus on the professional side is the sooner layoffs begin, the faster the company can recover from declining revenues and earnings, and reinvent. META is a stock in a sub-industry that has few members, hence it is used in many ETFs and mutual funds due to that rare sub-industry group. It has some stiff resistance shown best on the weekly chart above current price. But with support from institutional investors, the stronger support level in the bottom formation is likely to hold.
NASDAQ:META
by MarthaStokesCMT-TechniTrader
Relational Technical Analysis: A New Way to Look at ChartsRelational Technical Analysis™ or “Relational Analysis” is my contribution to the continuing evolution of technical analysis. It helps me understand who is in control of the price action of stocks, indexes, ETFs and more. It can provide a leading analysis for trading or investing in any chartable trading instrument, even cryptocurrencies. Relational Technical Analysis starts with an understanding of the current market participant cycle. There are 2 sides of the market participant cycle, each with a few different groups: the Professional Side and the Retail Side. The Professional-Side Groups: the Buy-Side Institutions, which I often refer to as “the Dark Pools” the Sell-Side Institutions, which include the Money Central Banks and largest Financial Services Companies the Professional Traders, both independent and Floor traders for either the Buy Side or Sell Side the High Frequency Trading Firms, aka HFTs The Retail-Side groups: Smaller Funds with less than $3 billion under management the Retail Groups: small lots and odd lots At any given time, one or two of these groups will dominate the price, trend and direction of an asset. Relational Technical Analysis reveals which of the market participant groups is in control. This is due to the differences between the way each group trades--how they execute trades, their reasons for buying and selling, their access to information, where in the trend they tend to buy and sell, and more. For example, there are huge differences between the order types and speed of execution of each market participant group: Order Types: The Professional side uses unique orders to their trading venues such as Time Weighted Average Price (TWAP) strategies for automated orders and multi-leg cross-market orders. Retail uses Market and Limit orders; Small Funds often use Volume Weighted Average Price (VWAP) strategies to trigger automated orders. Speed of Execution: The Professional-Side short-term traders trade on the second. HFTs trade on the millisecond. Retail orders must be filled within 1 minute. Dark Pool transactions can take up to 10 minutes or longer to fill huge, large-lot orders, based on the SEC Midas data analysis. Additional variables include Lot Size, Time of Day trades are transacted and Venue (whether on the public exchanges or on Alternative Transaction Systems like Dark Pools). These variables create very different patterns in candlesticks and indicators. Analyzing charts relationally, then, gives the trader an understanding of how price is most likely to behave in the near term. When the Professional Side is in control, the trend is typically more sustainable. Relational Technical Analysis uses a combination of the price and volume patterns created by each market participant group along with hybrid indicators that reveal the balance of power. The example below uses Chaikin Oscillator. A Volume Oscillator is always included in the set of 5 indicators I teach, a set which differs depending on which indicators you have available. On the SPX, we can see the shift of sentiment that occurred between October and January as the Dark Pools sold against the Small Funds. In October and November of 2021, there was extreme speculation from the Small Funds. The steep run up occurred on low volume and an extreme angle of ascent in Chaikin Oscillator. This was followed by a pattern that represents Dark Pool rotation. A trading range develops with stronger selling volume while Chaikin Oscillator moves down and stays at and below the center line over the topping pattern development. This rotation zone is confirmed in the months following, as Dark Pool TWAPs continue. The largest institutions were lowering their inventory of S&P500 components ahead of the downtrend. This Relational Technical Analysis showed a Shift of Sentiment in the market that was a crucial leading indication of the risk of a significant downside trend developing. Traders using this analysis had ample time to prepare for the downtrend which resulted in a Bear Market decline this year. Thinking ahead from here, I'm looking for the opposite as a bottom starts developing: a shift of sentiment back to the upside where Retail and Small Funds capitulate, followed by Dark Pool accumulation patterns. In summary, Relational Technical Analysis is a new way of looking at the charts which focuses on the unique candlestick patterns, trend formations and indicator patterns that each market participant group creates. This can provide a leading analysis for all trading styles. Martha Stokes, CMT www.TechniTrader.Courses This has been an introduction to Relational Technical Analysis, which I teach at TechniTrader and which I presented to the CMT Association in 2015. Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
Editors' picks
SP:SPX
by CMT_Association
45
$AIRS is building a base that you can't avoid!Seems like institutions are building a base just under $14.37. Look at the price and the volume pops above average, you can see that the price points are roughly aligned building out a very nice average. A break above $14.37 with Volume could be an early entry to a move higher. If you want to take the risk you can start to build a position right now and accumulate around the current price. *Manage risk under $11.9 or under $12.7* Start to add more to your initial position as the price consolidates under $14.37, after a break/close above $14.37 and then after $15.9. DYDD and manage risk accordingly.
NASDAQ:AIRSLong
by HaseebKhan_90
Institutions in CryptoHi! During every market selloff when fear is great there are also good opportunities to those who are not controlled by fear. Wanted to point out one of them. This could be one of the most exiting projects in Crypto this year. Side-note: I am holding their tokens since public sale and I'm bullish on that project. This chart shows pretty well how I like to operate in Crypto markets and you can read about it from my previous post: Recent market selloff has brought QRDO price down and to me it is in buy zone (I have long-term view). Basically they are providing the most secure custody for digital assets and they are mainly targeting institutions. But regular people can use their solutions as well. I'm using their wallet to store QRDO tokens and everything works like clockwork. In addition to that, simply just holding your QRDO in their wallet will earn you staking rewards 10.1% APY. I have been with this project since their public sale (July 2021) and I'm very happy how this project is developing. Few months ago they had 10k Twitter followers - currently it has grown into 47k (social engagement is good). They have made partnerships with some of the biggest names in Crypto: Coinbase, Figment, Metamask Institutional and Ledger Prime. They even have exposure on country level as they are providing infrastructure for El Salvador to power Bitcoin banking solutions. Quote from Bloomberg (06.01.2022): "Security concerns - not volatility and regulations - are holding investors back from Crypto." But institutions are coming, it is inevitable. And QREDO is ready - in terms of timing and product market fit. Currently they have quite low market cap, approximately $168 million. As I see their valuation in billions then still lot of upside potential remaining. As always, DYOR (do your own research), I'm just pointing out that trading/investing idea. Thank you and enjoy your trading :)
QLong
by Laurentsius
2
XMR/BUSD Expanding PhaseMonero (XMR) is setting up for a bullrun, just created its second wave of expansion to the upside, holding higher with huge demand, still without making any significant correction, which soundly demonstrates that the market's appetite for Monero is at its very early stages, as central banks keep on steamrolling their stimulae packages, printing money like there's no tomorrow, governments cracking down on fiscal havens, setting a worldwide minimum tax rate, public-blockchain heavyweights like Bitcoin (BTC) & Ethereum (ETH) getting increasingly discredited by those who see their every transactions tracked by IRS or its equivalents, due to conventional banking institutions reporting "know your customer" (KYC) details to the US authorities for tax-evasion mitigation, under the pretense of "anti money-laundering" (AML) & "combating the financing of terrorism" (CFT), which are all state measures to curtail individual liberty and force people to acquiesce to the forced wealth confiscation that conventional finance is accustomed to uphold, all of which is defied by Monero and other privacy cryptocurrencies.
XLong
by acsedward
What happened to Bitcoin...Right now a lot of traders are asking what happened to Bitcoin and what does the future look like? This can be answered with one word... Institutions. To understand what is going on with BTC let's breakdown the last few months. The above chart has key events marked. Hype - A world wide buzz to buy bitcoin. Whales - Institutions and large investors use the global buying power to start unloading bitcoin. Buying Climax - Institutions and large investors unload huge amounts of bitcoin as desperate retailers try to join the party. 10% of every wallet with >1000 BTC was sold - The after effect of this is seen in the charts as Bitcoin becomes unstable. Coal Mine Accident - Accident in China sparked the government investigate electricity use scaring BTC miners. $10 billion of leverage trades liquidated - This happened on the same day as the Xinjiang grid blackouts. As price dropped trades with excessive leverage were liquidated driving the price down further. Mining Hash Rate Drops - After Xinjiang grid blackouts bitcoin mining hash rate drops over 45% China Announcement - China reiterates cryptocurrency bans and vow to crackdown on crypto miners/traders. $8.5 billion of leverage trades liquidated - Organized dump by institutions lead to more liquidations and further price drops. Things to be aware of: - With the introduction of futures contracts bitcoin experiences significant dumps at the end of each month when contracts expire as large investors/institutions take profits and close contracts. even larger dumps are recorded every three months as longer term quarterly contracts expire. - The more you buy the more institutions will sell. This means that soon as there is hype and public rush to buy bitcoin the institutions will sell, this is how they make money. The only way they can trade so much volume is to go against the public (retailers). For example if an institution wants to place a short with 1 billion positions they need 1 billion long positions to fill the order (this is very easy when there is a global rush to buy bitcoin). This also applies to the opposite, If the public are keen on selling then the institutions will buy. - With the involvement institutions the future of BTC is likely to be full of "pump n dumps" that don't quite hit their targets. "Stop Loss hunting" is likely to become more prevalent as institutions try to fill orders. - Rumours are floating around that institutions plan to dump BTC below 25k (This is not confirmed and just speculation but something to keep in mind).
BYBIT:BTCUSD.P
by veryfid
4