Money Flow Continues To Show Distribution WeeklyPreview12/31/18

SPCFD:SPX   S&P 500 Index
Chaikin's Money Flow Indicator,( As Seen on Chart Presentation)
measures Volume in Terms of Accumulation/ Distribution,
continues to suggest that Distribution is Accompanying Price Advance,
from marked down lower levels in the S +P 500 making this week's sharp bounce rally SUSPECT.

Shorts had been positioned to capitalize only to see price blow up in their face this past week.
Short covering rallies often exhaust themselves as price continues to advance,
as large money takes advantage of the opportunity , to sell and exit the market.

As we close 2018, and enter 2019 this week,
I continue to believe that we have entered a new BEAR market,
that will make its presence KNOWN and FELT DEEP IN THE HUMAN PSYCHE

Rallies will not be able to get past key important longer term resistance points,
the effect of which will continue to cause additional new selling pressure to suddenly appear,
as trapped bulls throw in the towel,and exit the market at lower prices than they purchased.

That is the underlying characteristic of a bear market.

The only question in my mind for 2019 is how far prices will ultimately have to fall...
before real accumulation,and genuine price advance can begin a new again.

2019 The Year of the Pig, Can "symbolize" poor luck with achieving wealth,and unexpected financial losses".

Happy New Year !



I agree my friend. The bulls need to provide move proof to attract more buyers. If only companies that buy their own shares are the buyers we won’t see much of a progress. The Ponzi scheme will eventually blow in their faces and we will see a very nasty outcome. The indicators are lagging in nature but they support decisions to get involved. The investors will remain cautious until they see many indicators turned to upside. For active traders this market is ideal though.
+4 Reply
The_Unwind SviCapital

Trader's heaven indeed Svi.
It really give the trader the opportunity to get involved each day,
on either side of the market.
I trade 3 X Leveraged ETFs, on the S+P, Dow, and NDX. Bull/Bear
On any day, one index will lead the others.
Market is just giving a trader the opportunity, to step up to the plate anytime they desire.
Excellent fundamental rationals here, as always. Thank you.
I hope you have a very prosperous New Year.
+1 Reply
SviCapital The_Unwind
@The_Unwind, i day trade futures only: plenty of leverage, better accounting, better for tax, no day trading restrictions. No preference which side to pick as long as the price is moving.
The_Unwind SviCapital

I used to trade E mini Futures myself. The no day trading is the appeal.
But the $50 a point is a factor.I prefer the 3 X ETF's like SPXS and SPXL where I can position size, at much less $ risk.
Your insights are some of the best i've read anywhere.
2520 now looms larger, because what you have written. Thank you Svi
Best of luck in the New Year
SviCapital The_Unwind
@The_Unwind, thanks you too!
xnyl98 SviCapital
I agree too! I wonder how investors in these companies can allow the companies to do share buybacks when it ultimately costs them billions of dollars? If I was at a shareholders meeting I would be grilling management!

Thanks again @The_Unwind for unique analysis and insightful perspective!!

Thanks so much. Happy New Year to you
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