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Registered User
Joined: 3/25/2005
Posts: 1
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I believe PRZ has as outstanding business model and potential for future stock price appreciation. However, a recent retracement in the stock price crushed the moneystream indicator, not so with OBV. I would like to get some feedback as what factors in the retracement caused this indicator to drop to historic low levels.
Thanks in Advance
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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MoneyStream, of course, is a proprietary calculation based on both price and volume. The only two factors that could have caused MoneyStream to plummet are price and volume. What specifically happened with price and volume in the case of PRZ would be part of the proprietary calculation.
- Doug
Teaching Online!
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Registered User
Joined: 10/7/2004
Posts: 2,126
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I have traded PRZ. This stock has good long term potential. Good fundamentals and excellent industry group. I also observed an accentuated negative divergence in ROC as well as TSV and MS. Most important the volume pattern indicated distribution a while back and continue to say the same. Why this is happening I have no idea, but it may have to do with the acquisition of Colorado Pain Specialist. Not sure about the cons, and pros of that. At any rate - do not ask why - simply notice, take precautions base on your observations, and if not sure about it wait for the security to tell you when it looks better. By the way, I have seen plenty negative and positive divergences in the past that meant nothing.
good luck.
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Registered User
Joined: 1/14/2005
Posts: 21
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Hello All: Doug's answer to kolaskcj's question is technically correct, but lacking in insight. I recommend that kolaskcj go to the online help file and look under money stream until he finds the historical comments by Don Worden on Evolution of Cumulative MoneyStream and Balance of Power. MoneyStream evolved from the ashes of Tick Volume which Worden says is now a Zombie named Money Flow. There is one paragraph there that states that MoneyStream "embodies" price and volume but also makes an automatic adjustment when volume is not available. Mr. Worden further states that MoneyStream is similar to three separate versions of money flow including that by Chaikin but with a correction for what Mr. Worden considers to be a "logical error". For those willing to spend some time searching for a common logical error in the various formulae available for calculating money flows, you should at least gain a bit of insight into what it is that would provide CMS with the ability to contradict price. And if nothing else, you will learn a bit of history in the undertaking.
Regards,
j2d2
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