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| Why
Some People Almost Always Make Money in the Markets |
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How
the Smart Money Flow Index called the March 2009 bottom: |
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| (June
2009) In the middle of March 2009 we got a very clear buy signal
from our Smart
Money Flow Index. The Dow Jones made a new low of 6547,05 (close)
on March 9th and fell even below the SMFI, while the SMFI
was clearly acting much stronger (red and green arrows). Such an extremely
bullish divergence of these two market indicators predicted clearly a bottom.
The reason: While "Smart Money" bought right at the bottom, the
so called "crowd" (dumb money) dumped stocks at any price (Smart
Money Flow Index explained). |
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How
the Smart Money Flow Index called the November 2008 bottom: |
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| (January
2009) In the end of November 2008 we got a very clear buy
signal from our Smart Money Flow Index. The Dow Jones made
a new low on November 21st, while the SMFI was clearly acting much
stronger (red arrows). Such an extremely bullish divergence of these two
market gauges predicted a bottom at hand. The reason: Well informed "Smart
Money" bought right at the bottom while the so called "crowd"
(dumb money) panicked and sold heavily (Smart
Money Flow Index explained). |
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How
the Smart Money Flow Index called the March 2008 bottom: |
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| (June
2008) In the beginning of March 2008 we got a very clear buy
signal from our Smart Money Flow Index. The Dow Jones made
a new closing low in March while the SMFI was clearly acting much
stronger (green arrows). Such an extremely bullish divergence of these two
market gauges predicted a strong rally ahead. The reason: Well informed
"Smart Money" bought into weakness while the so called "crowd"
(dumb money) sold and sold short heavily (Smart
Money Flow Index explained). |
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How
the Smart Money Flow Index called the October top: |
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| In the
beginning of October we got again a clear sell signal from our Smart Money
Flow Index. The Dow Jones made a new high in October, but the SMFI
was clearly lagging behind (red and blue arrows), predicting a correction
ahead because "Smart Money" was distributing heavily into the
rally (Smart
Money Flow Index explained). Please read our weekly comment for
our members below: |
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(October
7th) The Dow Jones Industrial Average hit an intraday record of 14125
before ending the week up 170, or 1,2%, at 14066 and short sellers scrambled
for cover. The Standard & Poor's 500 rose 31 points, or 2%, to reach
a record 1558. The bulls took out the intra-day high of 1552,87, set
on March 24, 2000 and there must have been also an incredible amount
of stop-loss orders around this level. We would like to mention that
NYSE
members have been long, and most of the short covering was therefore
done by public
investors and odd-lotters
(dumb money). Billions worth of stocks are now in weak hands and
all these small guys are now probably waiting desperately for someone
who will buy their expensive shares. Since the NYSE Member Report is
published by the SEC two weeks after the applicable date, we have to
wait two more weeks in order to see how much short covering was done.
Our
Smart Money Flow Index is now outright bearish after the Dow reached
a new high and the SMFI didn't. It is of course possible that the short
squeeze will last for a while but we believe that the market is due
for a correction very soon. The number
of new lows indicates also that the rally is technically not in
a very good shape. We might even hear the first growl of the bear already
this week when the X-week crash cycle is due (week of October 12th).
Please
click here for more information!
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| When
will you join the "Smart Money"? Get a daily update of
this magnificent indicator for the ridiculous rate of only 35
cents a day (based on a 6-month subscription), plus all the other
proven indicators
of the Wall Street pros! |
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| How
the Smart Money Flow Index predicted the August correction: |
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(August 2007) In the beginning of June we got a very
clear sell signal from our Smart Money Flow Index. The Dow Jones made
a new high in May and August while the SMFI was clearly lagging
behind (red and blue arrows), predicting a correction ahead because of
a negative divergence of these two market gauges. The reason: Smart Money
was distributing into every rally (Smart
Money Flow Index explained). In the middle of August, Smart Money
was selling heavily into the short covering rally and an eye-popping negative
divergence indicated a sell-off ahead.
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| When
will you join the "Smart Money"? Get a daily update of
this magnificent indicator for the ridiculous rate of only 35
cents a day (based on a 6-month subscription), plus all the other
proven indicators
of the Wall Street pros! |
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| Smart
Money Flow Index explained
The Smart
Money Flow Index has long been one of the best kept secrets of Wall Street.
Everybody knows the importance of a closing price and other last hour
indicators like the Closing Tick, which we publish daily for free on our
portal. The Smart Money Flow Index is therefore calculated by taking the
action of the Dow in two time periods: the first 30 minutes and the close.
Whenever the Dow makes a high which is not confirmed by the SMFI there
is trouble ahead (Chart). The first 30 minutes represent emotional buying,
driven by greed and fear of the crowd based on good and bad news There
is also a lot of buying on market orders and short covering at the opening.
Smart money waits until the end and they very often test the market before
by shorting heavily just to see how the market reacts. Then they move
in the big way. These heavy hitters also have the best possible information
available to them and they do have the edge on all the other market participants.
(More
about the Smart Money Flow Index)
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What
you should know about some closely guarded secrets of the pros ! |
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| Do you
ask yourself sometimes why some people almost always make money in the markets?
The answer is quite simple and you can easily discover the little-known
secrets of the pros to join the winners. The most intelligent way to approach
the markets is to watch what the so called "smart money" and the
so called "dumb money" is doing. The
dumb money, or the so called "crowd", is getting consistently
beaten by the more street smart and
very shrewd, professional and experienced
traders. Stop
trading against the pros and begin getting rich by focusing on "smart
money" and "dumb money"
instead.
NYSE specialists,
floor traders and other NYSE members like all the well known Wall Street
names and brokerages are the smart money while all others are the crowd.
All these indicators can be found on our pages and they are updated weekly,
respectively daily, in our member section. |
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| The
problem of the Internet is that you have as many gurus as financial web
sites and you don't know whom you should believe. We are of course as
bullish at market tops and as bearish at bottoms as everybody else, but
we stick to our indicators. And anybody who has the slightest idea about
technical analysis will agree that our indicators do indeed make sense. |
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Free
download! |
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Past performance does not guarantee future results!
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