How buybacks support the market in volatile conditions

TradingView2026/03/24 19:48

By:TradingView

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Today's tutorial is about the way that CEOs and board of directors can use buybacks to maintain a level of price that they decide is important and correct for their company. Right now there is plenty of uncertainty, angst, and fear among retail investors. However, there are hidden support levels that can cause a retail trader selling short to have a whipsaw loss trade.
Buybacks are not just above providing higher dividends for all investors, not just retail investor. Buy Side Institutions hold vast quantities of stock of 4000 - 5000 companies and are the largest long term investors in the US market.
Using buybacks to hold their stock at a set price range is common right now. about 60% of all big corporations in the SP500 have open ended buybacks right now. AAPL has the largest with $100 billion set aside for its buyback program, the largest at this time. AAPL may be promoted by retail side gurus, or chatrooms, but the buyback program is automated and sitting there waiting, hidden and invisible until retail groups try to sell short. Avoid selling short companies with buyback programs as it is a high risk strategy when buybacks are sitting waiting.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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How buybacks support the market in volatile conditions

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