FX Evolution: Smart Money Is Doing This…

Investors can get an edge on the markets by simply following what the smart money is doing. Institutions such as hedge funds will often position themselves before a big move.

They can use tools like dark pool transactions to avoid alerting the markets. But investors can see big spikes in volume that suggest a move is coming up ahead. Other tools can also provide a longer view on the overall markets, not just individual stocks.

For instance, investors can look at sector ratios to determine where the market is moving now. Big tech stocks have started to lose some of their luster.

That doesn’t mean the market will crash. But it does mean that other sectors of the stock market are likely to lead. And a rotating market can be a healthy long-term sign.

Another tool is to look at key zones. Prior periods of resistance on the way up can become a point of support on the way down. And when stocks decline to a support zone, they’re likely to bounce higher.

Some key levels can tie into moving averages. For short-term traders, the 20-day is useful. For investors looking to make longer-term trades, the 50-day. And for long-term investors, buying at the 200-day can offer excellent long-term results.

While markets may look fearful after a few big swing days, the smart money continues to bet on stocks holding up, and even trending higher.

To look at the latest data and potential market moves now, click here.