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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Sunny Jim who wrote (5299)7/24/2000 10:38:58 AM
From: pater tenebrarum  Read Replies (1) of 436258
 
yes, the smart money index compares the action in the first half hour to the action in the last half hour of trading.

the theory being that the uninformed public does it's buying/selling at the beginning of the trading day, while the 'smart money' trades during the last half hour. therefore, the net change of the Dow during the first half hour is assigned a positive value if it is negative, and a negative value if it is positive, and vice versa for the net change during the last half hour. the results are then added to arrive at the net change in the smart money index.

the current divergence is the biggest in the history of this index.
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