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CI First Asset U.S. Tactical Sector Allocation Index ETF T.FUT



TSX:FUT - Post by User

Post by BayWallon Nov 25, 2012 8:44pm
97 Views
Post# 20641914

OBV

OBV

Clarification. OBV and  A/D (Accumulation/Distribution) indicators are calculated somewhat differently, both trying to measure buying/selling strength. In major stock price swings, they should both mirror the stock.

 

I looked for a Venture Exchange company which had recently declared bankruptcy (Poynt: PYN) and check its chart indicators.The OBV did not follow the stockdown, but the A/D did. So it's a split decision, but have to favour the downside as that's the trend. The irony here is, PYN owes INT (Intertainment Media) $1.7 million, which itself is struggling and already has 350 million shares outstanding and due for a rollback. Poor revenues also.

 

Anyway, for Futura both indicators remained higher while the stock price fell. No explanation, unless insiders control a lot of stock and did not sell while the stock fell. Doesn't  imply however that the stock is a buy. The boost to both indicators was in early 2011 when the stock went to 6 cents. Most likely the general public buying into the new car dealership/Aeroplan story.

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