Current Latest Computed Funds Flow Analysis (FFA):
For Worldwide Financial Markets:
31 October 2013, Thursday, 2.50pm Singapore Time
The Donovan Norfolk Ang Funds Flow Analysis Indicator
for Worldwide Financial Markets
31 October 2013, Thursday
Broad Markets / Big Markets / Big Wind Directions
European markets are 10 minutes away from opening for trading, while US markets (Dow, S&P500 and NASDAQ) are 6 hours 40 minutes away from the opening bell.
Based on current latest computational results, Holdings Index Strength of Big Hands changed from +4.621 to +7.419 in strength on the Donovan Norfolk Funds Flow Index Oscillator. On the other front, Big Hands' Puts holdings on hand changed from -2.027 to -2.918 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 were large dual-longs since 2 days ago: large increase in longs and slight profit-takings in puts.
+ Big Hands' puts on hand had spiked up in prices last week and these puts are to be profit-taken in batches.
+ Market-Movers used immediate term correction to spike up Puts prices, to long financial markets concurrently, and to create noise/confusion.
+ Big Hands are not shorting the markets despite consolidations, they are merely holding puts as short term downside-selling protections, and these puts are all in-the-money with profits right now.
+ For today, Big Hands are very large longs again with addition in puts, the 3rd consecutive day in loading more longs while making markets appear bearish.
+ For today, Big Hands increased very large load in longs, with Holdings Index Strength of Big Hands changing from +4.621 to +7.419 in strength on the Donovan Norfolk Funds Flow Index Oscillator.
+ Markets are healthily bullish-biased in outlook for the mid-term.
+ Any immediate-term corrections are subsets of healthy and larger mid-term upwave movements, as per reiterated during end-August/early-September warning of a large wave relief rally when everyone were selling on US Government Shutdown while Big Hands bought up cheaply and crazily.
+ Overall Funds Actions Structure: November-December Super Rally is expected now, with Mid-Term large upwave still in progress; all Short-Term corrections are occurring within a very strong Mid-Term Upwave Rally, so if one is shorting, it is considered a MidTerm-CounterFFA trade. CounterFFA have high risks when one is wrong.
+ Investors/Bulls could re-accumulate buys on dips for the larger mid-term rallies per reiterated since eng-August and early-September.
+ Big Hands' operations had for last week concentrated merely and mainly in using puts to profit for short term ( and not using shorts). They are reducing the Puts play this week and increasing longs.
+ Posture of Funds Flow Analysis: BULLISH-BIASED with mid term larger wave relief rally expected to last till Christmas.
+ FFA Litmus Test Results:
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 still within a mid term relief rally bounce and any short term corrections are to be judged as healthy retracements.
+ Below are the much larger mid-term upwave targets that still hold:
+ Financial Markets, Commodities Markets, Oil, Gold, Silver and Forex markets (EURUSD, GBPUSD, Swiss Franc, Japanese Yen, Canadian Dollar, AUDUSD, NZDUSD) are still expected to have some more upside against the US Dollar, and this upside is expected to be healthy until I turn big reversal.
+ Expectations are still unchanged: FCPO 3000RM as target, Gold $1500-$1550 as first target and $1750-$1800 as second target, Silver $30.000 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 for uncharted rally 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, ASEAN markets, Asia Markets 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.
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).
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:
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.
