Tuesday, April 12, 2016
Money (Out)Flow aka. "Bear Market"
In a bear market, stocks are strong in the morning and close near their lows...like yesterday and Friday. Etraders buy in the morning and institutions sell into the close...
"This is a rerun of Friday," said Art Cashin, UBS director of floor operations at the NYSE. "I think they're pretty well convinced this whole run higher in crude is a short squeeze. It's not going to have a long life."
The Chaikin Money Flow indicator prorates volume based upon where the market closes relative to the intra-day range. In the lower half of the range, CMF is negative, in the upper half it's positive. At the extremes the multiplier is -1, +1.
Posted by Mac10 at 5:17 AM