Funds Flow Analysis (FFA): 21 October 2013, Monday, 3.55pm Singapore Time

Current Latest Computed Funds Flow Analysis (FFA):

For Worldwide Financial Markets:

21 October 2013, Monday, 3.55pm Singapore Time

The Donovan Norfolk Ang Funds Flow Analysis Indicator 

for Worldwide Financial Markets 
21 October 2013, Monday

Broad Markets / Big Markets / Big Wind Directions

European markets are in the first 55 minutes of trading, while US markets (Dow, S&P500 and NASDAQ) are 5 hours 35 minutes away from opening for trading. 

Based on current latest computational results, Holdings Index Strength of Big Hands changed from +0.954 to -1.535 in strength on the Donovan Norfolk Funds Flow Index Oscillator. On the other front, Big Hands' Puts holdings on hand changed from -0.267 to -0.915 in strength on the Donovan Norfolk Funds Flow Index Oscillator. 

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

+ Bulls getting too complacent.

+ Dual sells by Big Hands today.

+ Big Hands unloaded net Longs on hand today and switched to slight net Shorts in holdings.

+ Big Hands loaded back some puts today.

+ Immediate term correction of a few days in the financial markets (stocks and indices) could be expected.

+ Up-drive rally may need some rest for the next few days (Creation of shake-outs against weak longs holders and complacent bulls).
+ This usually means EURUSD, GBPUSD, AUDUSD, NZDUSD, CAD and CHF will need some few days of correctional rest before resuming its upwards move.
+ Note: All previous mid-term rebound targets still remain as of current FFA-Action Judgement.

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.

Donovan Norfolk Ang