Looking back, 2020 was a year that few will forget.
From a markets point of view, it was a year in which 「dumb money」 (traders who chase trends) was the smart money.
However, several important factors suggest that we'll see a significant correction in 2021.
Who's buying the stock? Not institutions.
The number of institutional buyers for SPY (S&P 500 ETF) has fallen significantly in the past half-year while the number of institutional sellers has risen significantly.
Another sign is that Insider Buy/Sell ratio's 1-month average is at the bottom.
Insider is always viewed as smart money because they could reasonably have an information advantage.
If they are not buying, then definitely a bearish sign.
So obviously, it's retail money buying the stocks.
The market may be standing at a point where investors have huge divergence.
Source: Bloomberg, BullMarkets.co
Editor: Tommy
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fraud
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