How Smart Money Flow Index (SMFI) Captured the Financial Crisis

           To determine a bullish or bearish signal revealed from SMFI, you must observe if the SMFI confirms the Dow Jones Industrial Average movement.  When the Dow Jones index declines, but SMFI does not follow this path, it shows the bullish sentiment from Smart Money. Likewise, the Smart Money holds a bearish sentiment when the Dow Jones index rises, but the SMFI is stagnating.

The bear market comes every few years, but it is still difficult for ordinary investors to foreshadow the disaster until it actually happens. That is the reason we are always in shock about bear markets.

However, the Smart Money did perceive a few threatening signs a few weeks before the market large-scale catastrophe in 2007. The following chart demonstrates that even though the market was in a topping process, and kept making new highs before it crashed in October 2007, the SMFI did not break any records. This means that the Smart Money did not participate in the rally. Instead, they took a cautious stance and sold at rally.

 

 

SMFI Successfully Captured the Financial Crisis by Showing Bearish Sentiment

         Source: http://wallstreetcourier.com/port/po-smart-money-flow-index-001.htm

You can get more information from www.wallstreetcourier.com.

If you want to learn more about the Smart Money, you can visit:

http://top5indicators.blogspot.com/2013/09/global-futures-bottom-indicator-gfbi.html

http://top5indicators.blogspot.com/2013/09/how-to-follow-smart-money-and-profit.html         http://top5indicators.blogspot.com/2013/09/how-to-catch-market-bottom-by-using.html         http://top5indicators.blogspot.com/2013/09/what-is-smart-money.html        http://top5indicators.blogspot.com/2013/09/how-dumb-money-behaves-in-stock-market.html      Thanks for your visiting and reading.     Have a great day!