Market Structure 001：Institutional Money Flow(Institutional flows)

Date: 2026-06-27

Series: Financial Notes → Market Structure

Why do you study this?Why）

Stock prices are affected not only by the performance of the company but also by institutional flows (see para.Institutional Money FlowThe impact of the campaign is felt.

In many cases, markets have risen or fallen not because of changes in fundamentals, but because large institutions such as funds, indices, marketers and so on have been trading according to rules.

Understanding these financial flows helps us understand the sources of short-term market volatility, not just concern ourselves with it.KLine.

Market background (in millions of US dollars)Market Context）

Recent market discussions have focused on:

• Quarterly balance at end of June (%)Quarter-end Rebalancing）

• Index adjustments (in thousands of United States dollars)Index Reconstitution）

• Dark Pool Trade (Dark Pool）

• Semiconductor plate rotation (Semiconductor Rotation）

Many investors believe that:

Technical sales pressures may occur at the end of June, and market pressures may be reduced as the sales are brought to an end in July.

The following are to be noted:

This is an analysis of financial flows rather than a definitive projection of future performance.

Core concepts (Key Concepts）

Dark Pool (Black Pool)Dark Pool）

Definitions

Platforms for large stock exchanges between large agencies.

Trade orders are not publicly shown in real time, but the price of the transaction is usually referred to in the open market.

Why do you need a dark pool?

If the institution buys millions of shares in a single stock, it will push prices up quickly.

As a result, they usually choose dark pools to complete large transactions in order to reduce market shocks.

I need to be careful.

The Dark Pool deals are as follows:

There’s an agency buying it, and there’s an agency selling it.

Therefore:

The fact that the dark pool is a deal in itself does not mean that the market will rise.

Selling pressure (Selling Pressure）

The persistence of large numbers of sales orders in the market has led to downward pressure on stock prices.

The greater the pressure, the more difficult the stock price to rise.

Force sales (%1)Forced Selling）

Sales palettes arising from the requirements of the rules.

Common sources:

• Fund rebalancing

• ETFRewind

• Index adjustments

• Insufficient security (in thousands of United States dollars)Margin Call(Remediate study)

These sales plates are not usually made out of investors.

Soaking (Accumulation）

To avoid pushing prices higher, agencies will buy large amounts of money and divide them into small orders, gradually establishing warehouses.

This slow process of collecting stocks is called snorting.

Chess (dealing)Shares / Position）

“Cold” in the stock market is essentially the stock held by investors.

“Spucking” is the constant absorption of stocks on the market.

Blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah, blah,Sharp Rally / Melt Up）

Stock prices rose rapidly in a short period of time.

Often, this means that large amounts of money are concentrated in the market.

Why is it so easy to sell at the end of June?

Rebalance at the end of the quarter (Quarter-end Rebalancing）

Many pension, mutual fund and insurance funds set fixed asset allocation ratios.

For example:

• Stocks：60%

• Bonds：40%

If equities rise too fast and the ratio deviates from the target, the Fund will have to sell some of the stocks and buy in bonds to restore the asset allocation to its original ratio.

Such transactions were institutional requirements rather than market-blind.

Index adjustments (in thousands of United States dollars)Index Reconstitution）

In case of changes in the index composition unit, the index fund must adjust its holdings in tandem.

For example:

RussellThe index is restructured annually at the end of June each year, which results in a higher volume of transactions for the stock concerned.

In contrast:

S&P 500andNasdaq 100Adjustments were not fixed for a single month in June, but were made at different times throughout the year, as decided by the Committee on Indicators.

Valuation (%)Valuation）

PE（Price-to-Earnings Ratio）

PE= share price, per share profit (%)EPS）

It states:

The market is willing to spend more or less of its current profits on buying shares from a company.

Growth Unit (%)Growth StockThe #Jan25PE

The growth unit usually has:

• Faster income growth (%)Revenue Growth）

• Faster profit growth (Earnings Growth）

• Higher future expectations (Future Expectations）

So, markets usually prefer to give higherPE。

For the growth unit:

HigherPEThis does not necessarily mean that the valuation is excessive.

The key is:

Whether future profits will continue to grow.

Grown-up companies (Value / Mature CompanyThe #Jan25PE

Grown-ups usually:

• Slower income growth

• Profit growth stable

• Business model matures

Therefore:

Markets for the money.PEUsually lower.

If a mature company has a very high-risePE，

Investors tend to further analyse:

Whether there is an overvaluation problem.

Today’s summary (Summary）

Today, the main lesson is how institutional funds affect markets.

It is important to remember:

• The dark pool is just a trading platform, not necessarily a rising one.

• The pressure may come from both emotions and institutions.

• Many of the sales at the end of June were quarterly fund adjustments.

• PEIt cannot be compared alone, but needs to be analysed in conjunction with the growth rate of the company.

• The market perspective requires a distinction between facts, analysis and prediction.

06-26-2026Semiconductor

Today, Friday, the fighting was intense and the whole line fell.
There’s been some more semiconductor up, but it’s all back.
06-03AVGOThe money goes out, it goes beyond what Wall Street expected, but it goes down, from the…500I fell.380And now more so.360I thought the Internet bubble was coming.
During this period, the semiconductor rises and falls like a small boat in the wind. Everyone is counting on good news from the small ship.
06-24MUThe money is out, it’s out of the way to Wall Street, and it’s shocking the world. It’s raising the semiconductor’s share price again.
It’s the end of June, it’s the whole line. It’s still silent.
Prepare for multiple options on Monday.SOXX