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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (33890)	3/11/2002 1:19:04 AM
From: nspolar	Read Replies (2) \| Respond to of 209892

UB I assume were talking money flow index (volume adjusted) re INTC. I like to use a period of 9, so I have current MFI reading just above 60. Since I like MFI I did a bunch of correlations once upon a time and felt 9 was the optimum compromise. I do agree with your observation. The MFI peaked (Period = 9) about Nov. 9, oscillated steady downhill and put in a 2nd double bottom about 1.5 weeks ago. It has risen on the latest rally to just above 60 but looks weak. Usually price gains are very limited unless it exceeds and stays above 60, for some time. If it reverses here soon the stock price could drop a fair amount. Often after a long decline in the MFI, like in INTC, the 1st rebound following doesn't make it. The large declines follow this. I also look at the 3yr MFI on weeklies. Doesn't look too healthy of a pattern here either, but a little early to say for sure. FWIW some other stocks I follow (a few of which I'm short) show similar trends. I don't think this bodes well for the general markets, and I don't think this general market rebound has as much underlying strength as some bulls think. If it did one would not find many money flow index patterns like this. But I guess the read on this depends somewhat on if one is a short term trader or a more longer term oriented person. IMHO.