Institutional Investors Continue Selling Entire Rally

Private investors were net buyers of stocks for the first time in six weeks last week according to Bank of America's Equity Client Flow Trends report. According to the report, which is compiled using aggregated view of BofA Merrill Lynch client trading flows into US stocks executed by the firm’s cash equities business, clients were small net buyers of US equities ($150 million) for the first time in six weeks.

• Hedge Fund Q3 Letters

However, despite the small net buying, clients continued to favor ETFs over single stocks with the former offsetting the latter last week. Hedge funds were net buyers for the second consecutive week, while institutional and private clients remained net...