Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: Lane Hall-Witt who wrote (5709)	3/2/2001 2:35:25 PM
From: WaveSeeker	Read Replies (1) \| Respond to of 6445

LHW, one of the indicators that Linda Raschke created was the Smart Money Indicator (SMI). Her premise is that the first hour represents dumb money, and the last hour represents smart money. So she subtracts the last hour net change - the first hour net change, then sums the number to calculate a running total. If the net change is very positive, then it's a buy signal, very negative a sell. She calculates it for the Dow, but you can also do it for the S&P and Nasdaq. Since the indicator has turned positive yesterday, this could be one sign that the pros are buying while the amateurs are selling. For details on the indicator, it's in the book Street Smarts. WS