We rarely find it necessary to post the chart of our proprietary
broad market money flow indicator in two consecutive issues,
however we feel it is important for readers to be aware of Friday's
development.
In Friday morning's issue, we stated "Without an increase in
money flow, it would not surprise us to see the broad market trade
a little higher from here, but then reverse to test yesterday's
(Thursday's) breakout level."
The black arrow on the chart above notes the large positive
broad market money flow reading on Friday's close.
This strong extension of the positive money flow trend does not
mean stocks won't pause or pullback slightly. It does signal to us
however, that the bullish trend is not ready to falter and is
continuing to gain underlying strength off November 2012 lows
Posted by sschulman on 21st of Jan 2013 at 10:47 pm
I'm confused - so S&P money flow is moving down relative to
S&P, whereas broad market money flow is moving up? Is that the
correct interpretation of these charts?
Posted by frtaylor on 22nd of Jan 2013 at 08:55 am
Also, note that none of trader500's charts are daily.
That's important, because Zach's reference talks about the
Friday money flow being up, not the entire week. With
previous days being down, trader500's charts, being an ave. of the
week, Friday's change is averaged down by the other days.
Money Flow
Posted by zach06 on 21st of Jan 2013 at 10:06 pm
We rarely find it necessary to post the chart of our proprietary broad market money flow indicator in two consecutive issues, however we feel it is important for readers to be aware of Friday's development.
In Friday morning's issue, we stated "Without an increase in money flow, it would not surprise us to see the broad market trade a little higher from here, but then reverse to test yesterday's (Thursday's) breakout level."
The black arrow on the chart above notes the large positive broad market money flow reading on Friday's close.
This strong extension of the positive money flow trend does not mean stocks won't pause or pullback slightly. It does signal to us however, that the bullish trend is not ready to falter and is continuing to gain underlying strength off November 2012 lows
Money Flow Quarterly
Posted by trader500 on 21st of Jan 2013 at 10:39 pm
money flow?
Posted by sschulman on 21st of Jan 2013 at 10:47 pm
I'm confused - so S&P money flow is moving down relative to S&P, whereas broad market money flow is moving up? Is that the correct interpretation of these charts?
Suzn
Also, note that none of
Posted by frtaylor on 22nd of Jan 2013 at 08:55 am
Also, note that none of trader500's charts are daily. That's important, because Zach's reference talks about the Friday money flow being up, not the entire week. With previous days being down, trader500's charts, being an ave. of the week, Friday's change is averaged down by the other days.
Suzn, Welcome to Trading
Posted by zach06 on 21st of Jan 2013 at 10:59 pm
Sometimes you are better off throwing darts! LOL