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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 165.13+1.1%Nov 26 3:59 PM EST

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To: DanZ who wrote (15366)9/23/1998 1:36:00 AM
From: Joe NYC  Read Replies (1) of 152472
 
Dan,

Suppose the bid and ask are 49 3/4 and 50. Suppose they stay like that for a period of time. Suppose I want to sell. I can either set a limit order at $50 and wait my turn and sell for $50. Or I can enter a market order and settle for 49 3/4. If first case, I would be generating positive money flow, in the other case negative money flow.

But my intention is the same. The real difference is between being patient and panicking.

Positive money flow, especially when calculated over at least a week, indicates accumulation while negative money flow indicates distribution.

I don't think I agree. In every transaction, one party is accumulating, the other is selling.

I think the money flow is more about market psychology. One side acts on impulse, the other actually has a plan.

I don't know how reliable the money flow theory is in the real world, but in my opinion, if the market was rational, it would a contrarian indicator.

Joe
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