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Biotech / Medical : CEPH - CEPHALON

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To: Jon Khymn who wrote (21)12/3/2002 4:57:28 PM
From: RMP  Read Replies (1) of 109
 
Individual stocks and money flow To buy individual stocks after we've seen a trend established, we look for positive trends in the money flow. This is a matter of tracking the purchases and sales of individual stocks by the world's biggest financial institutions -- the so-called “smart money” that is always first in and first out of the huge moves in prices. These giant financial institutions are like elephants: They leave big footprints. As a private investor, you want to follow those footprints because they mean good support for a stock. The reason stocks go up is that there are more big buyers than big sellers, and if you can find the stocks where the imbalance is greatest before the rest of the crowd, you will find the greatest winners.

Money flow is again more art than science, however. You are mainly looking for divergences. If a stock makes a new high, you want the money flow to make a new high. The money flow should therefore mirror the stock chart. When it doesn't, you've got trouble. In other words, when a stock is making new highs and the money flow begins to decline in advance of the move, then you have distribution -- or selling. This is particularly true when a stock is making new highs on weaker and weaker volume

The above was from moneycentral.msn.com

The links below may provide some info on money flow,

marketscreen.com
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