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Friday, 11 October 2013

Funds Flow Analysis (FFA): 11 October 2013, Friday, 3.30 pm Singapore Time



Current Latest Computed Funds Flow Analysis (FFA):
For Worldwide Financial Markets:
11 October 2013, Friday, 3.30 pm Singapore Time


The Donovan Norfolk Ang Funds Flow Analysis Indicator 
for Worldwide Financial Markets 
10 October 2013 Thursday


Broad Markets / Big Markets / Big Wind Directions

European markets are in the first hour of trading, while US markets (Dow, S&P500 and NASDAQ) are 6 hours 00 minutes away from opening. 

Based on current latest computational results, Holdings Index Strength of Big Hands changed from +3.311 to +0.755 in strength on the Donovan Norfolk Funds Flow Index OscillatorOn the other front, Big Hands' Puts holdings on hand changed from -2.039 to -1.882 in strength on the Donovan Norfolk Funds Flow Index Oscillator. 

Broad/Big Market (Big Wind Direction) Immediate-Term/Short-Term Posture by Big Hands:

+ Big Hands unloaded some longs today on a bullish market day.
+ Big Hands made use of gap-ups today to unload some Longs.
+ Big Hands still holding slight Longs and are still persistently NO-SHORTS.
+ Big Hands are using slight Puts for minor protection.
+ Consolidation process today, but outlook still tentatively slightly bullish-biased.

+ It would be prudent to reduce slight longs for safety purposes and risk management purposes as there were some unloads by Big Hands on a market bullish day.


Broad/Big Market (Big Wind Direction) Long Term Outlook by Big Hands:

+ Weak markets (e.g. Philippines, India, Korea etc) had entered into Bear Market Zones at high points previously.
+ Strong markets (e.g. US, Singapore, Germany, etc) had held on to critical supports temporarily and will attempt to bounce off these critical supports; these critical supports will get tested repeatedly (their critical supports are still being tested currently).
+ US markets (DJIA, S&P500 and NASDAQ) will go on to make all time new highs while all other markets are still in support-turned-resistance testing modes.
+ Rebounds of emerging economies will merely be dead cat bounces.

In essence, there will be 3 groups of BIG MARKET MOVEMENTS from now:

1st Group (Weak Markets): 

Weak markets such as Korea KOSPI , Philippines, Indonesia, Spain IBEX etc.
These markets already broke down critical supports which denote initial bear market stage; these will do dead cat bouncing back-tests (falling knife dead cat rebounds). 
Sell on rebounds.

2nd group (Mid-strength Markets): 

Singapore STI, Hong Kong HSI, UK FTSE100, France CAC, Italy MIB, Spain etc
These markets will rebound off critical supports now (STI 2925-3065 pts, HSI 19000-19500 pts, FTSE-UK 5900-6000 pts as analysed previously), with no breakdowns yet. Refer to all past technical analyses.
Ride, observe and be cautiously ready to sell.

3rd grp (Strong Markets): 

US Markets of S&P500, DJIA and NASDAQ, German DAX as well as Malaysian KLCI
These markets may hover at all time new highs and throw a big array of confusions to traders, investors and analysts. While US hover around all time new highs, weak markets' rebounds will confirm bear market and mid-strength markets may transit to bear market phase in this rebound.
Ride and observe and be cautious.

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Donovan Big Hands Funds Flow Computational Oscillator
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Donovan's Funds Flow Analysis Index Oscillator:
-10 ----- 0 ------+10
Donovan's Funds Flow Analysis Strength-Index Scale Key:
negative (-ve) = shorting;
positive (+ve) = longing;
0: No shorts and no longs (direction-less)
1-2: Weak strength / weak holdings
3-4: Moderate strength / moderate holdings
5-6: Strong strength / high holdings
7-8:Very strong strength / very high holdings
9-10:: Rally Mode in store if +ve / Plunging Mode in store if -ve

Implication of Broad Markets/Big Markets/Big Wind Indices Directions
If it is a rising tide in Index Big Wind, most or almost all stock boats generally rise;
If it is a receding tide in Index Big Wind, most or almost all stock boats generally go lower.
Hence the importance of Big Wind Directions blown by Big Hands.



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