Smart Money Still Not Buying

Discussion in 'Trading' started by Woodrow97, Apr 4, 2019.

  1. dozu888

    dozu888

    no bother lol... just a bear trying to rationalize.

    real data is the opposite.. https://www.dailyfx.com/sentiment most of retail is OUT, not IN.. and ET although better than most other trading sites, can not be too far away... retail people all think alike.

    this price action from october to march is too obvious what the purpose was.
     
    #11     Apr 5, 2019
  2. WonderBoy

    WonderBoy

    https://www.bloomberg.com/news/arti...acting-dumb-could-be-good-news-for-u-s-stocks

    Why Smart Money Acting Dumb Could Be Good News for U.S. Stocks

    “The big drop in the SMFI is likely not a negative indication of ‘smart money’ selling,” he wrote in a note Tuesday. “More likely, it’s the opposite as passive investors hit the sell button and exchange-traded fund providers have to sell stock in order to keep everything in line before the market close each day.”

    The Smart Money Flow Index traded this week below levels seen during the global financial crisis and the dotcom crash, but that’s not because so-called smart money investors are running for the exits, but rather more likely is the result of forced selling from exchange-traded funds, says Sundial president, Jason Goepfert.
     
    #12     Apr 5, 2019
  3. sle

    sle

    Well, someone was buying from the end of December until now 'cause the market is up. If the smart money indicator is right (I have my doubts) it muse have been the dumb money.
     
    #13     Apr 5, 2019
  4. MKTrader

    MKTrader

    Yeah, has this ever been systematically tested, both in and out-of-sample? Hundreds of indicators out there...most are worthless.
     
    #14     Apr 5, 2019
  5. ironchef

    ironchef

    Those dumb retails. They will pay for their sins. How dare they? :wtf:
     
    #15     Apr 5, 2019
  6. Woodrow97

    Woodrow97

    Yep! But looking at conditional probability, we are passed the January highs of last year, yet smart money flow has FALLEN -30% at the same price level, at roughly the same volatility.
     
    #16     Apr 5, 2019
  7. Is that the real issue or is it more that "smart money wasn't onboard, but now they are"?
     
    #17     Apr 5, 2019
  8. Woodrow97

    Woodrow97

    The big picture is really: why have so many pros left the game?
     
    #18     Apr 5, 2019
    sandra_ae-eng likes this.


  9. bullish sentiment = 100% = over the top = complacency personified.

    What has Stock Market History done to such folk?

    Undertaker business bull market
     
    #19     Apr 5, 2019


  10. Because they are positioned SHORT.
     
    #20     Apr 5, 2019