Show Me The Money (Flow)!

Published Sat, 20 Dec 2014 12:48:27 +0000

SHOW ME THE MONEY (Flow)!

By George R. Harrison

TRACKING MONEY-FLOW THROUGH VALUE SHIFTS IN MARKETS

Weve all heard of the old magicians trick of distracting with one hand while the other is where the real set-up is taking place.

It seems were up against the same process at work in the markets were experiencing today.

Theres a fundamental and major shift taking place. Everyone feels the vibe of it, but, wheres the proof (instead of the speculation) to bear out the truth of it?

Its not to be found from conventional sources, that much is clear.

Like trying to detect the secrets of the magician, we need to focus on what the other hand is up to.

When it comes to markets, a one-dimensional approach isnt enough to reveal the whole multidimensional story.

Charts for stocks or commodities tend to be one-dimensional in that theyre generally denominated in that markets national currency and this very fact can disguise the effects of that market relative to the international flow of money.

In other words, the question that needs answering is: Is the international, smart money flowing towards the market in question or away from it back into the world reserve currency (the US DOLLAR)?

Take the Bombay Stock Exchange index (BSE) for example in the chart below.

A quick one-dimensional look shows a strong bull market rise with, what looks like a normal downside reaction taking place within the trend.

However, to gauge a foreign markets international VALUE, it needs to be compared with the world reserve currency, which, at this time, is the US DOLLAR.

A shift in a markets value relative to the US Dollar, will reveal where the international flow of money from that market is headed. This will, in turn, reveal underlying strengths or weaknesses that may not be immediately obvious in the local currency denominated chart for that market.

When we compare the BSE to the US Dollar and chart that, we see something more revealing:

What shows as weakness on this chart (the recent pull-back in prices) is now revealed to be something more serious as the money flow is shifting towards the US Dollar internationally and away from the BSE.

This is a powerful perspective shift that can alert traders and investors to fundamental shifts in markets which can only be seen relative to the reserve currency of the US Dollar.

By the way, this shift towards the US Dollar during the recent economic jitters is understandable and, it does affect the markets.

The US Dollar has soared in value to an exponential rate that will be unsustainable by its very nature.

This flow of purchasing dollars is being driven by worldwide factors that have created instability or at least the perception of instability.

The smart money moves, and is moving, to the most secure or perceived secure locations.

By way of example, note how the German Stock Market (DAX) is reflecting the same world-wide trend:

The shift for this market started back in July and never looked back.

On the other side of the World, as represented by Australia, we see the same loss of value and shift towards the US Dollar from the All Ordinaries Index:

Clearly, significant sums are migrating from different nations stock markets and buying US Dollars for investment in dollar-denominated products.

This significant trend will have a monetary-system wide effect that will be hard to explain using the usual one-dimensional chart analysis.

The US DOLLAR is a powerful factor at work behind the scenes and one which well examine further in the days ahead. George

george@money-tigers.com

Disclaimer: All articles and posts are a matter of opinion (drawn from over 44-years of market research & experience) and are provided for general information purposes only and are not intended as investment advice. Information and analysis above are derived from sources and utilize privately discovered methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisers.

www.WDGann-Lost-Secrets.com

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Bio: George R. Harrisons background includes time as a Hedge Fund assistant manager; an intensely focused 44-year long period as a researcher of the Markets, a Master Market Analyst & Chartist; recognized by Gann-trained clients from around the world as a uniquely qualified, modern-day WD Gann expert, (having rediscovered and restored-to-print many ‘lost’ Gann techniques through his decades of research work) and creator of several revolutionary market analytical techniques and tools.

Mr. Harrison continues his market research & private client consultation and instructional work while living on the island of St. Croix in the US Virgin Islands.

SPECIAL: Mr. Harrison now offers limited, private one-on-one advanced instruction in a resort setting on St. Croix in the Virgin Islands.

George may be contacted by e-mail at: george@money-tigers.com

Asia: Sand in the Gears of the Bull Market

Asia:

Sand in the Gears of the Bull Market

By: George R. Harrison

The Asian Stock Market scene has been dynamic and strong. At least until some sand got into the gear works a few months back and started to grind the bull markets to a halt.

The canary in the coal mine was first spotted in the Malaysian Stock Index.

Malaysias stock market has been the weakest of the 4 were looking at here and, as the chart shows, has fallen around 7% in the last 3-months time.

The Malaysian Stock Index decline also made its appearance known in both the Hong Kong and the Singapore Stock Indexes.

Near mid-September, the train ride upwards became derailed, hesitating and then started working its way further on the downtrending slope.

Singapore. the financial capital of the region, reacted and mirrored the shift at the very same time.

The main difference between Hong Kong and Singapore Stock Indices is that Singapore has weathered the shift much better, showing itself to be the stronger market of the two during this time period.

Of course both of these markets are huge compared to Malaysia.

No doubt that the continuing massive movement of funds to Singapore (leaving nations perceived as less safe and secure) has gone a long way towards keeping the index stronger, even after its initial falter.

However, all is not well in the region and there are plenty of signs that indicate that a slowdown and trend change are in progress.

Besides Indonesia, (which has defied expectations by continuing its rocket ride upwards in spite of oils crashing prices) Thailand has been a shining light reminder of the good old days of uncomplicated bull market price movements.

It has enjoyed a beautiful, strong upwards, non-volatile bull market move all this year (until recently).

Alas, that sand-in-the-gearworks I wrote of earlier has begun to make itself visible in the Thai market now. When you look at the chart, you can almost hear the grinding and slowing down of the gears to this index. If you listen closely enough, you may find that they have stopped and are starting to reverse a little.

The Thai stock index has also been strong and managed to hold off the beginnings of faltering for an additional quarter past when the initial shifts were beginning to show in Hong Kong, Malaysia and Singapore.

However, it may be time for this market to catch up and the last few days seem to indicate that thats whats happening.

Behind all of these market gyrations is the effect of the US DOLLAR and the weakening of so many currencies against it. Well examine this more closely in the next article as space is limited here. George

Disclaimer: All articles and posts are a matter of opinion (drawn from over 44-years of market research & experience) and are provided for general information purposes only and are not intended as investment advice. Information and analysis above are derived from sources and utilize privately discovered methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisers.

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Bio: George R. Harrisons background includes time as a Hedge Fund assistant manager; an intensely focused 44-year long period as a researcher of the Markets, a Master Market Analyst & Chartist.

George has been recognized by Gann-trained clients from around the world as a uniquely qualified, modern-day WD Gann expert. (having rediscovered and restored-to-print many ‘lost’ Gann techniques through his decades of research work) and creator of several revolutionary market analytical techniques and tools.

Mr. Harrison continues his market research & private client consultation and instructional work while living on the island of St. Croix in the US Virgin Islands.

Current market comments and archived articles may also be found on his website at www.wdgann-lost-secrets.com.

George may be contacted by e-mail at: george@money-tigers.com

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