Pascal
08-22-2013, 02:37 PM
It is interesting to see that the 20DMF has been "brain dead" since the NASDAQ stopped regular trading.
This does not mean that the 20DMF is only influenced by AAPL and GOOG. The 20DMF is a sector based indicator. Hence, since there are about 100 sectors, AAPL would at most influence 1% of the indicator.
What this flat line means is that funds and HFTs are on switch-off mode because they cannot measure the market anymore. Any move into a specific direction could very well be reversed tomorrow.
Pascal
19632
This does not mean that the 20DMF is only influenced by AAPL and GOOG. The 20DMF is a sector based indicator. Hence, since there are about 100 sectors, AAPL would at most influence 1% of the indicator.
What this flat line means is that funds and HFTs are on switch-off mode because they cannot measure the market anymore. Any move into a specific direction could very well be reversed tomorrow.
Pascal
19632