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To: UnBelievable who wrote (28439)	10/15/2000 6:38:31 PM
From: Ilaine	Read Replies (1) \| Respond to of 436258

You raised an excellent point via PM - the price of a share at opening or closing times the trading volume of that share does not tell you how much money was traded on the share for the day, because the price is constantly changing during the day. I am trying to figure out how much real money went into or out of the broad markets as a whole over the course of a day. I started looking at this a few months ago to try to determine whether money was just sloshing back and forth between the Nasdaq and the NYSE, or was coming into or going out of the market. Since the Nasdaq is weighted, it's impossible to tell. And the weights seem to be adjusted daily. Someone, I think it was Julius, pointed out that the Wilshire 5000 is not weighted, but that wouldn't answer the question about the sloshing. Now I am trying to duplicate what TrimTabs does, track liquidity, since I don't feel like paying them $24K a year for the info.

To: UnBelievable who wrote (28439)	10/15/2000 6:41:48 PM
From: AllansAlias	Respond to of 436258

(This is not directed at you UB.) I think money-flow is becoming decreasingly useful. It is a great tool on the way up. We don't have that much practice with it on the way down. -g I have no doubt that we will get better. -g All chart-chasers will get destroyed.

To: UnBelievable who wrote (28439)	10/15/2000 7:30:13 PM
From: GraceZ	Read Replies (1) \| Respond to of 436258

I do have a hard time believing that "professional money managers" decide to buy a stock because the small investor is selling it, I would never say that either. I said that the money flow was frequently positive as the share price declined because of the small lots being net out and the blocks net in. There is no cause and effect relationship. The fact that they often buy into public dumping has to do with public sentiment. Public sentiment follows price, as the price rises the sentiment rises with it and the public bids it up even more. As the price breaks it takes sentiment down with it, the public dumps even harder as the price bottoms. The professional, hopefully, makes buying decisions based on fundamentals so they are found picking up stocks as the public sells because the valuation becomes attractive again. Of course if the price becomes even more "attractive" they start dumping as well. Of course, if the pros were always right and the public always wrong we wouldn't have so many negative mutual fund returns this year or quite so many rich little old ladies now would we? I must disagree when you state that a MM is indifferent to the price movement They may in fact not be indifferent (as you point with the MOC orders), yet there is little they can do to control where price goes in a market that is continuous. Think of how many firms are involved with making a market in any given NASDAQ stock. Even if you consider that the majority of the shares are traded by the three largest firms, you'd have to have one hell of a conspiracy theory going to think that they can fix the price or even the direction of any one issue given how fast the market moves and each MM is covering dozens of issues. Then think of the large number of trades that are now executed on ECNs with no human intervention. The only time the MM sets the direction of the price is a situation where there is no one on the other side of a trade or the booked orders are too far apart. It is my understanding that MOC orders are a match up of a buyer and seller that both agree to the closing price and the MM profit is suppose to come from the b/a spread not from betting against the institutional client. OTOH I do have a MM friend that has complained to me several times of having these kinds of trades go against the firm, so I'd have to assume if they can go against them they can go for them as well.