Smart Money Flow Index
The Smart Money Flow Index
One of the best kept secrets of Wall Street
The Official Source for Bloomberg Professional
The Smart Money Flow Index (SMFI) has long been one of Wall Street’s best-kept secrets. Almost everyone has heard of ‘Smart Money,’ ‘Dumb Money,’ and the so-called ‘Crowd.’ Such indicators play a crucial role in our market regime research. Top-performing money managers, savvy investors, and institutional asset managers rely on them. One of them is the Smart Money Flow Index, for instance, which is also featured on the BLOOMBERG PROFESSIONAL Service under SMART <Index> <GO>
The key is to know when the smart guys are trend-following or contrarian
Just ask yourself these questions: Would you be a buyer if you saw that greed among market participants is skyrocketing while the ‘Smart Money’ is heavily short at the same time? Do you know when to follow the hype or when it is time to part ways? The key is to know when the smart guys are trend-following and when they act contrarian. This is exactly what the Smart Money Flow Index is all about.
The Smart Money Flow Index
The Idea of the Smart Money Flow Index
Identify the Buying Behavior of Smart- versus Dumb Money
The idea of the SMFI is to identify the buying behavior of Smart- versus Dumb Money in the U.S. stock market. The Smart Money Flow Index is based on the concept of Don Hays’ Smart Money Index (SMI), but uses a more efficient formula to remove emotional transactions. The SMFI was developed by R. Koch in 1997 and is a trademark of WallStreetCourier.
The Smart Money Flow Index is calculated according to a proprietary formula by measuring the action of the Dow during two periods: shortly after the opening and within the last hour. The first minutes represent emotional buying, driven by greed and fear on the part of the crowd, based on good and/or bad news. During the opening, there is also a lot of buying on market orders, as well as short covering. Smart money typically waits until the end, and they tend to test the market beforehand by shorting heavily in order to gauge the market’s reaction. Afterwards, the big investments are made. These heavy hitters tend to have the best possible information available, and they have an edge on all the other market participants.
The Smart Money Flow Index: A Must-Have for Investors!
Nobody rings a bell at major turning points – Smart Money does!
Seize the opportunity to invest with the insight of seasoned professionals. Don’t hesitate – sign up for free today and harness the power of the Smart Money Flow Index to make informed financial decisions and stay ahead in the market.
- Follow the experts with a daily-updated and interactive Smart Money Flow Index for the Dow Jones Industrial Average
- Access the SMFI hours before it is sent to Bloomberg, giving you a head start in the market
- Daily access to the WSC Capitulation Index: The user-friendly version of the Smart Money Flow Index
- Premium members access the Smart Money Flow Index and the WSC Capitulation Index for 11 additional indices
- Unlock a wide range of Smart- and Dumb Money Indicators in our members area
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