• 19 days Could Crypto Overtake Traditional Investment?
  • 24 days Americans Still Quitting Jobs At Record Pace
  • 26 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 29 days Is The Dollar Too Strong?
  • 29 days Big Tech Disappoints Investors on Earnings Calls
  • 30 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 32 days China Is Quietly Trying To Distance Itself From Russia
  • 32 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 36 days Crypto Investors Won Big In 2021
  • 36 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 37 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 39 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 40 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 43 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 44 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 44 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 46 days Are NFTs About To Take Over Gaming?
  • 47 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 50 days What’s Causing Inflation In The United States?
  • 51 days Intel Joins Russian Exodus as Chip Shortage Digs In
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

  1. Home
  2. Markets
  3. Other

ETF Money FLow

12/2/2014 7:56:54 AM

Good morning Traders,

Another chart I forgot to share with my morning update takes a look at the money flow data for ETFs back during the 2007 top.

ETF Money Flows

Observations? Again, as we've shown over the past money flow is usually a contrarian indicator. A peak in flow is usually associated with a top. The changes in the ETF landscape over the past decade has a significant impact on the signal from ETFs.

On the chart, you'll notice 4 peak readings. The first peak came just before (a few weeks) the 2007 top. The second peak came on the second bounce in the market that failed and really initiated the weakness. The third peak actually came at the second bottom as the market formed a secondary bounce, but again, this was the secondary b wave setting up the larger move lower. And finally, the 4th peak came just before the market fell off a cliff.

Note, there's also a 5th peak, just below the black line that has no significance here. It came in as the market was trying to bottom. But the market couldn't bottom until the buyers were out...

Now if you combine this with the NAAIM data (sorry for not matching time frames), you can see some correlation.

NAAIM exposure Index

It's the reason we started following these two data series - to get better ideas of when tops and bottoms are coming in. So stay tuned - our job is to get you positioned right in the market and hopefully over the period of you're life when you're investing and growing your assets, the cumulative effect of more educated decisions about when to buy and when to sell, will put you in a better position... Our business is in its 10th year and we want to thank our subscribers, both long term and new, for being a client.



Also on a side note. Since the barometer is not allowed to give individual stock advice, we have brought in two great traders to advise you on stocks as we see a challenging market in 2015. So if you get a chance, both our traders have set up free educational email series teaching you their trading systems. Here are the links if you want to give them a try...

Ian Mitchell's Stock Trader: http://forms.aweber.com/form/90/174545590.htm

Damon Verial's Stock Gap Trader: http://forms.aweber.com/form/33/1216030333.htm

We're all about real traders providing real advice, helping newer and intermediate traders improve their trading. So I encourage you to try the email series.
As always, if you have any questions, please email us at info@stockbarometer.com


Back to homepage

Leave a comment

Leave a comment