A 20-day look at the PM Money Flow shows a most interesting long term reversal pattern with lots of positive divergences and confirmed support by the average MF. Plenty of indicators derived from price alone obviously do just what stock prices do and are matching the existing trend with a lag time. Users of this website prefer to trust the leading indicator of Money Flow and to follow the edges derived from backtesting of its past behavior. This can be puzzling as MF is often too early but is usually right in the end with a high percentage of wins. Losses are few and limited by numerous fail-safe protection triggers in case of trouble.
The GDX robot came 9 cents away from hitting the stop (47.94) before a strong reversal both in price and MF in afternoon trading. After being minutes away from a short signal, it is now at 3 average days of issuing such a signal, giving us a lofty cushion for the last day of the first quarter. Floor clusters are neutral and don’t matter much as they will be totally different next Monday with new weekly, monthly and quarterly levels. We’ll have plenty of time to peruse them quietly this weekend.
Billy
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