Charts of Interest by Wall Street Courier |
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Why Some People Almost Always Make Money in the Markets
Occasionally we contribute articles and charts to other financial sites and financial publications in order to generate some hits and gain new members who want to join the "Smart Money". Below are some of our bullish forecasts when "experts" called for Dow 6000 or even the "Mother of All Bear Markets".
On October 19th, 2005, we contributed some charts to the well known Kirk Report with the title: "10 Reasons why you should not listen to the bears!" The article and the charts can still be found in Charles E. Kirks archive at: http://www.thekirkreport.com/2005/10/19/index.html (6th topic from top).
Our contribution for May 22nd, 2006, can as well still be found in the Kirk Report (17th topic from top) (http://www.thekirkreport.com/2006/05/22/index.html) under the headline "10 reasons for a bear trap". It is very seldom that one can see such an eye-popping difference between smart money and dumb money like then.
(May 2006)
In the end of April 2006 we got a very clear sell signal from our Smart
Money Flow Index. The Dow Jones made a new high in May while the SMFI
was clearly lagging behind (red and blue arrows), predicting a correction
ahead because of an eye-popping negative divergence of these two market
gauges. The reason: Smart Money was selling heavily into the rally (Smart
Money Flow Index explained). Afterwards the market sold off 5%
within a few days.
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will you join the "Smart Money"? Get a daily update
of this magnificent indicator for the ridiculous rate of only 10
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indicators of the Wall Street pros!
(March 2006) In the end of November 2005 we got a very clear sell signal from our Smart Money Flow Index (Smart Money Flow Index explained). The Dow Jones made a new high on November 25th while the SMFI was clearly lagging behind (red arrows). The reason: Smart Money was selling heavily into the rally. Afterwards the market went sideways and at the same time the SMFI fell to new lows (left green arrow), predicting a correction ahead. This correction came in mid-January. But then we got an eye-popping bullish divergence when the Dow Jones fell to a new low on January 20th while the SMFI refused to go lower (green arrows). Please read the advice to our members in our "Indicators Watch" column of February 5th, 2006:
(February 5th) The bears did indeed come back for a second helping - the Dow Jones industrials sagged by 113 points, or 1%, to finish at 10793. The Standard & Poor's 500 slid 19, or 1,5%, to 1264. Both these indexes are now 2,3% off the post-2001 highs they reached on Jan.11. The Nasdaq was hit harder, falling 41, or 1,8%, to 2262, about 3% from its recent high. However, we believe that we will soon see Dow 11000 and more. Of course we would like to see more bearishness or some capitulation. But short selling by "dumb money" goes really through the roof (Charts of Interest) and our Global Futures Put/Volume Ratio is now outright bullish. The Smart Money Flow Index has refused to fall below its recent low, and this is a clear buying signal which we should not ignore. We are aware of the fact that we didn't get any clues from the SMFI since quite some time. This indicator got probably somehow distorted in 2005 when the Dow, down 0,61 percent for the year, had its smallest change since 1926. There might be some more volatility ahead, but any weakness should now be viewed as a buying opportunity.
When will you join the "Smart Money"? Get a daily update of this magnificent indicator for the ridiculous rate of only 10 dollars a month (based on a 6-month subscription), plus all the other proven indicators of the Wall Street pros!
(November 13th, 2005) Occasionally we contribute articles for newspapers in order to generate some hits and gain new members who want to join the "Smart Money". Our contribution for October 17th can still be found in the Kirk Report of October 19th (http://www.thekirkreport.com/2005/10/19/index.html) under the headline "10 reasons not to listen to the bears". Please go to this page if you want to see the charts:
