Sentiment starts to turn - money flow trends via BofA
Money flow trends among sectors can be an effective guide for investors to gauge how the market is going to perform.
$Bank of America (BAC.US)$ has disclosed most recent money flow trends from its clients. Here are some insights that can be delivered from the charts below.
·There is a significant divergence between the money flows in total stocks and ETFs, indicating the market may have reversed. Net inflows in total stocks have turned positive last week while capital starts to flow out of ETFs for the first time during the past four weeks.
Notes: According to research from Sentimentrader, high ETF volume relative to the volume in the underlying stocks is often a sign that uncertainty is high and the market is likely to suffer from a sharp plunge. Conversely, when things are going well and investors are confident in the prospects of their stocks, funds will flow into individual stocks instead of ETFs as stocks tend to perform much better.
·There was also a notable shift occurred in the money flow of the Consumer Discretionary sector, besides the Tech sector recorded a positive net inflow last week.
Notes: Market data since 1928 indicates that every time the S&P 500 fell to correction territory, sectors of Industrials, Tech, with Consumer Discretionary are most likely to outperform when the market reaches a true bottom. In comparison, Materials tend to outperform when there is a false bottom, according to a study conducted by Sentimentrader.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
How do analysts evaluate the market?
18KFollowers
46Following
38KVisitors
Follow
goglobalgobig : bofa to hit at least 43
Dreampoetsjob : i am not interested in hearing about bofa
HamelJonah goglobalgobig : What’s Bofa?
作手乌斗天罡 : Among the three major indexes, Nasdaq is the weakest, whether there is really a capital inflow, the trend of the market is clear. Market superimposed interest rate hikes are expected in growth stocks, and bulls face a lot of resistance. On the contrary, traditional value stocks such as KO,ADM have stepped out of their own independent market and entered the distribution stage. This is the current situation, capital is like the flow of water, I would like to stay at the top of the wave.
71207915 : bofa deez nutz
Stuka II HamelJonah : Bank of America’s clients. Simply put, these are the institutional money that could drive the main momentum over the ongoing market atmosphere. And generally, transactions from institutional side could account for 90% of U.S. stock market trading volume.
71771639 作手乌斗天罡 : I feel that the article is talking about the comparison between the average capital flow in the past four weeks and the capital flow in the past week, which is not applicable to the market observation of one or two days. Give the market a little more time.
71771639 作手乌斗天罡 : Let the bullet fly for a while.
作手乌斗天罡 71771639 : Try to make only responses, not predictions.