Thursday, March 1, 2012
"5 Lb's Sugar in a 2 Lb BAG" old expression -> IT LOOKS LIKE THIS
Once you see it, its not real complicated and yes they do that with stocks.....
#1, the Breadth, the number or stocks moving up or down, in a moving average rises or falls up or down
#2, theoretically, the Stock Price Index moves in step with the Breadth Index,
#3, the Money Flow Index measures the amount and speed with which money flows into or out of stocks.
Pretty simple right? Sure, except as you can see by the Breadth, the number of stocks moving up, is falling and yet the Price Index is moving upwards. WHY ? Because more and more money is being forced into fewer and fewer stocks. Note that the overall volume is falling, making it even clearer that the market is being force-fed $$$ into fewer and fewer stocks.
Given all of that and the previous post here, I think this is its own very competent commentary. Caution.
I wont clutter this up with any more words. 'Nuf said !!