2024 Bear Market Prediction: Follow the Institutional Money

I predicted the bull market of 2023; now I believe it's time to liquidate stocks.

They say follow the money, right? That means finding out what the big institutions are doing.

One great way to do that is with the Chaikin Money Flow indicator. Robert Chaikin has accurately predicted so many major market turning points, in numerous stocks, and other asset classes. You, too, can use his indicator to do so.

How Chaikin Money Flow WOrks

Here is how it works: it follows the institutional money flows. If institutions are buying, then you want to be be buying. If institutions are selling, then you want to be selling.

All you have to do is look for divergences between price and money flows. See the charts below. So, what are institutions doing?

Institutions are Selling to At-Home Investors

Institutional dollars have fled the market as at-home investors entered the market. In other words, the unsophisticated investors are the ones buying stocks from the institutions who are quietly selling 🤫

Money Flows are a Predictor of Market Activity

The Chaikin Money Flow predicted the following bear market / collapses:

• 2000 - August “Dot Com” Bubble Top

• 2007 - October top - “Mortgage Crisis” top

• 2018 - October top - Interest Rate top

• 2020 - January top - Covid Top

• 2022 - January top - Interest Rates Recession

Now, we are at a DOUBLE TOP with the January, 2022 highs… but on very weak money flow….

Here is the Dot Com Bubble - double top on declining institutional money flows.

My Strategy in 2024: Playing it Safe, Taking Gains

I am on the defensive. There is ALWAYS opportunities to buy - why buy now when the market has no underlying strength? I’m waiting to buy when institutions jump back in the market. And being on the side of the institution is the path of least resistance to success, so why not?