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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (23502)12/17/2004 2:34:58 PM
From: ild  Read Replies (1) of 110194
 
Date: Fri Dec 17 2004 14:20
trotsky (RAJA) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
in principle it's a contrary indicator. however, one must be careful - it's not THAT simple. it's also an indicator that has to be checked for divergences. and one must use it in conjunction with other data.
the current case seems to be: individual investors are selling ( i.e., throwing the towel ) while larger traders/institutions seem to be buying. so currently i would view it as a contrary indicator - the money flowing out represents buying power that will come back in once the sector turns back up.
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