Saturday, November 20, 2010

MOMO & Volume MOMO update

The Inst. Hldgs. MOMO is OBERBOUGHT as is the FLOW MOMO. Look at the last 2 yrs and observe that we should expect at least a 1-
month pause or correction......and the Banks look worse.
Prec. Metals on the other hand look like they are gettin' ready for rock'n'roll. The Flows look like they want to explode and the still OVERBOUGHT MOMO needs only another brief respite to trigger the move....
(You have to wait for the upturn given that the FLOW picture did NOT support that last run up and created that ugly looking Divergence - look at the beginning of Q4 on the chart)
Bear in mind that in the world of THE GOLDEN5 Rules MOMO, FLOW MOMO come before Sentiment. This means that we always have to interpret SENTIMENT in the context of the then existing MOMO & MOMO FLOW picture.

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