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Institutional money
can drive a stock. When
institutions are buying, the stock may go up significantly.
Adversely if the institutions are selling, the price
might drop significantly.
If
institutional money is flowing into a stock and the
price goes down, this may indicate the stock is oversold
or has bottomed. If Institutions are selling and the
price is up, this may indicate the stock has been
over bought
Watching
certain Institutions or managers like Warren Buffet
of Berkshire are important for their historical
returns are significantly
greater than others.
Watching
the institutions will bring
new company and sector trends to the foreground.
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