Funds Flow Analysis (FFA): 25 October 2013, Friday, 3.59pm Singapore Time

Current Latest Computed Funds Flow Analysis (FFA):

For Worldwide Financial Markets:

25 October 2013, Friday, 3.59pm Singapore Time

The Donovan Norfolk Ang Funds Flow Analysis Indicator 

for Worldwide Financial Markets 
25 October 2013, Friday

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 31 minutes away from opening for trading. 

Based on current latest computational results, Holdings Index Strength of Big Hands changed from +0.648 to -2.522 in strength on the Donovan Norfolk Funds Flow Index Oscillator. On the other front, Big Hands' Puts holdings on hand changed from -2.748 to -3.911 in strength on the Donovan Norfolk Funds Flow Index Oscillator. 

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

+ Big Hands have repeatedly flipped between holdings in shorts and holdings in longs for the past few days.
+ The past few days' movement is quite rare, one of big loads and big unloads by the market-movers.

+ Volatility in short term to be expected now.

+ Big Hands have dumped all longs on hand today.

+ Big Hands have not only maintained their puts, but further loaded more bearish puts.

+ Big Hands' puts are now spiked up in prices and in-the-money (profits).

+ Short term correction is now firmly in place. 

+ Up-drive rally's immediate-term to short-term correction is firmly in place now. 

+ Big Hands' operations has for this week concentrated in using puts to profits for short term.

+ This mid-term rally's short-term correction is expected to last 1-2 weeks.
+ Not all stocks need to react to index correction, especially the index-independent stocks.

+ International financial markets worldwide (Stocks, Equities, Indices, Commodities, Forex: EURUSD, GBPUSD, AUDUSD, NZDUSD, CANADIAN DOLLAR CAD, SWISS FRANC CHF AND JAPANESE YEN JPY, Gold, Silver, Crude Palm Oil and Crude Oil) are expected to undergo short term correction within a mid term relief rally dead-cat-bounce.

+ Below are short-term correction targets of this correction:

1. Malaysian FKLI: 1,790 points and a whipsaw just below 1790 points.(refer: http://donovan-ang.blogspot.sg/2013/10/fkli-index-25-october-2013-1215pm.html) 

2. Hong Kong Hang Seng Index: 22,000 points. (refer: http://donovan-ang.blogspot.sg/2013/10/hang-seng-index-intraday-25-october.html)

3. UK FTSE100: 6500-6550 points.
4. European Euro STOXX50: 2804 points.
5. US NASDAQ Composite: 3700 points.
6. Germany DAX: 8700-8750 points. (refer: http://donovan-ang.blogspot.sg/2013/10/dax-index-25-may-2013-friday-548pm.html)

7. AUD, NZD, EUR, GBP, JPY, CAD, CHF will generally be weak until the corrections end. 

+ Below are larger mid-term upwave targets that still hold (added some targets below too):

+ Financial Markets, Commodities Markets, Oil, Gold, Silver and Forex markets (AUD, EUR, CAD, GBP, NZD, CHF etc) are still expected to have some more upside against the US Dollar, and this upside is expected to be healthy until I turn reversal.

+ Expectations are still unchanged: FCPO 3000RM as target, Gold $1500-$1550 as first target and $1750-$1800 as second target, Silver $30.00 as target, Golden Agri (Palm Oil Stock) S$0.60 as 1st target and S$0.74 as 2nd target, AUDUSD $0.96 as first target and $1.00 parity as 2nd target, USDJPY ￥83.54-￥84.00 as final target, India CNX Nifty Index 6188-6320 as up-move target and break-out of 6320 points as second target, and Oil $118.00-$120.00 as tentative target, FKLI 1900 points as target, or until I turn reversal.

+ And the ULTIMATE BIG TARGET: Stocks Worldwide and across the international boards to rally on every overbought and on top of public disbelief. 

+ Emerging Markets, Asia and Peripheral European Markets are expected to outperform: Risk-on Rallies worldwide still expected together with Gold, Silver and Commodities, and will continue up-move until I turn reversal.

+ Special Note: 

The respective asset class markets (Gold, Silver, Crude Oil, Palm Oil, Commodities, Forex, Stocks and Worldwide Stock Market Indices) have moved in my directions since.

+ So far, only India SGX/CNX Nifty Index, AUDUSD has hit initial targets as above listed. 

+ More upsides in worldwide financial markets (Stocks, Equities, Indices, Commodities, Forex: EURUSD, GBPUSD, AUDUSD, NZDUSD, CANADIAN DOLLAR CAD, SWISS FRANC CHF AND JAPANESE YEN JPY, Gold, Silver, Crude Palm Oil and Crude Oil)  are still expected (refer past analyses).

+ Japan's QE effects are wearing out, Nikkei-225 may become the weakest link of international financial markets when the rising tide ends.

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