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Is there a way to chart the flow of money from one world stock market to another?

Since volume leads price, I am interested in charting the flow of money from one geographic part of the stock market to another (like when Emerging markets are in favor or Japan is in favor). I am thinking that I might be able to do this with the Chaikin Oscillator (which is among the indicators available on a SharpChart) of the following ETFs: IWV (USA total market), EZU (Eurozone Mkt), EWU (UK), AAXJ (Asia), EWJ (Japan), and EEM (emerging mkts).
So, my more specific question is this.

Is there a way to construct a chart (sharp chart, perf chart or other) that compares the Chaikin Oscillator of the following ETFs: IWV, EZU, EWU, AAXJ, EWJ, and EEM?

If not, can you think of another way to chart the flow of invested dollars from one of these markets to another?

Best Answer

  • markdmarkd mod
    edited April 2016 Accepted Answer
    Well, the scan engine returns only symbols, but you could include a "rank by" statement.
    On the results page, the last column will display the results of the "rank by" calculation, highest to lowest. You can then save the symbols to a list in the sorted order, but the calculation results are not saved.

    The per cent math of the rank by statement might be a little complicated because CMF numbers can be negative.

    I wonder if it wouldn't be sufficient just to know the direction, or changes of direction, of CMF (or it's moving average). But that's your call of course.

Answers

  • I don't see a way to put the CMF on one chart for multiple symbols. You can get multiple symbols on one chart with the Price indicator, but the overlays for indicators do not include CMF. But I'm not that expert at chart construction, so maybe somebody else has an idea.

    But, if you wanted to put the different symbols in a list (or write a giant "OR" statement in your scan), you could run scans to catch changes in the direction of CMF - one scan to capture CMF moving up, one for moving down. I think I might use a moving average - maybe a 21 day moving average of CMF(63) - you would have to test what works best - and test it for higher or lower than say, 5 days ago.

    That would show the flows in each area, but it wouldn't prove where it came from or where it is going. I'm also thinking you might want to include something to represent bonds, like TLT and/or HYG, maybe a commodities index like GSG, or the specific commodities like oil, maybe USO, or gold, GLD, because these are other places money can go.

    Just a thought.
  • Thanks. I was planning to add TLT and JNK (which I think would be the rough equivalent of HYG). I also like adding USO and GLD for the reasons you gave.
    If I put the ETFs I mentioned above and these 4 into a chart-list to run the scan on, how would I construct the scan code to find the percentage of increase or decrease in CMF for each of the members of the chart-list over the past 2 weeks?
    I think I am still limited in the kinds of results that I can imagine a scan producing.
  • Thanks @MarkD. I may have to settle for now with a perf chart with the following symbols: IWV,EZU,EWU,AAXJ,EWJ,EEM,TLT,JNK,GLD,USO. Although that is ranked on price, it is at least compared by percentage increases or decreases.
    Thanks again. I have a few more symbols in the list than I originally intended.
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