MONEY FLOWS 9/19/2016


I sometimes look at the money flows for clues regarding potential turning points in price. These numbers aren’t always accurate, but scores of buying or selling can influence short-term market direction. Three of the last six trading days had moderate selling into strength numbers pop up in miners. This action supports prices dropping a bit further into their respective Buy Zones.


September 12th had -$574,650,000 flowing out of GDX


September 15th had -$272,150,000 flowing out of GDX


September 19th had -$437,690,000 flowing out of GDX


Conversely, if these numbers appeared in the buying into weakness column, I would be leaning towards a price bottom. Again, their track record isn’t perfect but more times than not they prove to be a suitable forecasting agent.

Money flow data is provided by the Wall Street Journal