But here again, that doesn't always happen. Sometimes, block traders will view a dip in price as an opportunity to buy on the cheap. Evidence of buying on weakness can be a signal that the price may soon rise. Bloomberg Money Flow also keeps track of its picks to measure their performance over time. The data hold some interesting twists, however.
Some noteworthy anomalies are also apparent.
A year ago, given the amount of stock being bought on weakness, Xerox looked poised to rise. Similarly, Tyco International has been recently featured four times as a stock that block traders were selling on strength. Hey, nobody's perfect. Linda Hayes is assistant managing editor of Wealth Manager. All rights reserved.