Thursday, 31 January 2013

Funds Flow Analysis (FFA): 31 January 2013, Thursday, 4.59pm Singapore Time



Current Latest Computed Funds Flow Analysis (FFA) 

For Worldwide Financial Markets:
31 January 2013, Thursday, 4.59 pm Singapore Time



Broad Markets / Big Markets / Big Wind Directions

As expected and warned previously, there will be a powerful rally.

European markets are in the first hour of trading, while US markets are 5 hours 31 minutes away from the Thursday opening bell. 

Based on current latest computational results, Holdings Index Strength of Big Hands changed from +2.988 to +4.727  in strength on the Donovan Funds Flow Index OscillatorBig Hands' Calls holdings changed from +1.444 to +1.633 in strength on the Donovan Funds Flow Index Oscillator. Dual pronged longs today and a significant one.


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

+ Very large longs again, suggesting up-wave to carry on.
+ Short term was a swing back to neutral 3 days ago and a powerful swing to longs/buys since 2 days ago.
+ Shake-out operation against short term longing retailers is completing.
+ Worldwide markets set to resume very powerful bull run in the immediate and short term.
+ Bias towards powerful rally worldwide as expected since 3 days ago.


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

+ Mid-long-term remains a buy on dip in 2013 as markets in Europe and Asia have negated bear market technical structures as mentioned last year 2012. 
+ Long term funds are still buying/investing.
+ Short term and immediate term shorts/sells/profit-takings by traders represent entry/re-entry opportunities for longer term investors (i.e. buy on retracement dips).
+ Short term shake-outs on weak holders, or retailers with high leverage and no holding power, represent golden chance to buy on dips cheaply. 
+ As highlighted previously, by 2Q/3Q 2013, many markets (except PIIGS) will make new bull market highs since 2009 financial crisis..


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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 boats generally rise;
If it is a receding tide in Index Big Wind, most or almost all boats generally go lower.
Hence the importance of Big Wind Directions walked by Big Hands.


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