Just in the last days we heard a lot of "smart money is leaving the stocks". So I researched this topic because I would like to have an empirical view on that. This article came up where they classify smart money in stocks from A to E.
I'm wondering how to calculate this A/D rating, to classify Stocks. Does somebody know a paper/article were it's
Exclusive rating in Investor's Business Daily. One of the IBD SmartSelect® Corporate Ratings, it tracks the relative degree of institutional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks. Updated daily, stocks are rated on an A+ to E scale.
A = Heavy buying
B = Moderate buying
C = Equal amount of buying and selling
D = Moderate selling
E = Heavy selling
The rating is enhanced by "+" and "-" signs to show additional detail on institutional activity; a "B+" indicates greater accumulation than a "B" rating, whereas a "B-" indicates less accumulation than a "B" rating, and so on.