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Friday, 20 September 2013

Funds Flow Analysis (FFA): 20 September 2013, Friday, 2.58pm Singapore Time



Current Latest Computed Funds Flow Analysis (FFA):
For Worldwide Financial Markets:
20 September 2013, Friday, 2.58pm Singapore Time


The Donovan Norfolk Ang Funds Flow Analysis Indicator 
for Worldwide Financial Markets 
20 September 2013 Friday


Broad Markets / Big Markets / Big Wind Directions

European markets are 2 minutes away from opening for trading, while US markets (Dow, S&P500 and NASDAQ) are 6 hours 32 minutes away from opening. 

Based on current latest computational results, Holdings Index Strength of Big Hands changed from + 0.001 to -0.003 in strength on the Donovan Norfolk Funds Flow Index OscillatorBig Hands' Puts Holdings changed from -3.018 to -3.402 in strength on the Donovan Norfolk Funds Flow Index Oscillator. 

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

+ Per analysed yesterday, Big Hands still doing consolidations.
+ Neutral consolidations with persistent puts.
+ Big Hands had already priced in this NO-TAPERING by FED in the past 4 weeks. 
+ Now Big Hands can either:
+ 1) Pump further to create shorting set-ups to accumulate shorts, or 
+ 2) Start selling down
+ Option 1 has higher probability based on FFA set-up, i.e Markets still have some remaining and lingering last wave upside to create Shorts set-up.
+ As per said yesterday, Big Hands to go into consolidation mode for a few days till next week in order to adopt a wait-and-see approach, and this consolidation will end next week.
+ There is increasing likelihood that after this consolidation, Big Hands will push up indices worldwide for another round. While doing so:
+ Penny stocks and weak stocks worldwide will start selling down now or selling on good price for distribution.
+ Mid-Cap stocks will carry on its consolidation
+ Large-Cap stocks, Strong stocks and Index stocks will carry on its rally.
+ Indices worldwide will be expected to have one last wave of minor rally, and this rally is expected to trigger cut-losses of retailer Shorts worldwide/internationally.
+ This next wave of minor rally to come after current few days of consolidations in financial markets worldwide, and is expected to be for shorting purposes and not for longing now based on FFA interpretation. 
+ The nature of current rally will now change mode to one of a shorting-purposed rally, but is still expected to wipe out majority of shorts out there in the markets.
+ Financial markets, commodities markets, Gold, Silver and Forex markets (AUD, EUR, CAD etc) still expected to have some more upside but this rally from here has changed in nature though.

Broad/Big Market (Big Wind Direction) Mid-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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