NYSE volume was up 11.30% on Thursday from the day before, but
it was not near a level that would imply a "blow off top" by the
broad market. Instead, higher prices are finding support from new
money in flows. Please observe the chart below.
On 01.03.13, We reported that our proprietary measure of broad
market money flow has just moved higher after basing for
approximately one month. The chart above shows a healthy flow of
money into the market since that report.
Yes, the market is due for a pullback and has poor structure to
be revisited beneath it, but the chart above shows that the current
rally is not made of balsa wood either.
Further, keep in mind that the market can maintain higher prices
longer than traders can remain solvent. Be cautious and start with
small initial positions when approaching this market from the short
side. Right now it seems the only thing that can derail the bulls
is the forthcoming debt ceiling issue in Washington D.C., which
will start to heat up closer to the end of January.
zach, if money flow charts can be read just like price charts we
would have right now a nice and symmetric a-b-c-correction up after
an impulsive leg down.... and about now it should go down
again..
Suppose I read that one wrong
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Money Flow
Posted by zach06 on 11th of Jan 2013 at 05:18 am
NYSE volume was up 11.30% on Thursday from the day before, but it was not near a level that would imply a "blow off top" by the broad market. Instead, higher prices are finding support from new money in flows. Please observe the chart below.
On 01.03.13, We reported that our proprietary measure of broad market money flow has just moved higher after basing for approximately one month. The chart above shows a healthy flow of money into the market since that report.
Yes, the market is due for a pullback and has poor structure to be revisited beneath it, but the chart above shows that the current rally is not made of balsa wood either.
Further, keep in mind that the market can maintain higher prices longer than traders can remain solvent. Be cautious and start with small initial positions when approaching this market from the short side. Right now it seems the only thing that can derail the bulls is the forthcoming debt ceiling issue in Washington D.C., which will start to heat up closer to the end of January.
zach, if money flow charts
Posted by zwyss on 11th of Jan 2013 at 05:38 am
zach, if money flow charts can be read just like price charts we would have right now a nice and symmetric a-b-c-correction up after an impulsive leg down.... and about now it should go down again..
Suppose I read that one wrong