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FloatCharts.com
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August 21, 2006
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During the week of August 11th, Ford Motor Co. broke out above its float turnover. This is the first time in a year and a half that its price moved above the top level of its float turnover. Feel free to share this stock report with others. Float Turnover Theory (The Basics) - When a company comes public it issues shares outstanding. The management always holds some percentage of these shares. What's left over and is sold to the public, is called the float or floating supply. Float Charts are all about tracking the floating supply in an attempt to see where The Smart Money is buying and selling. The gray rectangle on a Float Chart is known as a Float Turnover and changes from day to day much like a moving average. It shows the least amount of time it takes for the entire float to change hands once. The total amount of shares traded during the float turnover equals the floating supply. We simply add up the number of shares that traded over a given time frame until it equals a stock's publicly accessible float number. Imagine a stock's price that goes sideways for one float turnover right at the bottom of a long down trend and then breaks out to the upside. The idea here is that during the sideways move new ownership (The Smart Money) has possibly bought the float hoping that the price will move higher. Once a large percentage of the float is accumulated and held tight by The Smart Money, any new demand drives the price higher.
Will Ford Motor Move
Higher From Here? A float turnover breakout is not necessarily a buy signal. It is an early sign that the long term trend is ending and the stock may be ready to turn around and head higher. Whenever any stock makes a long term bottom, turns around and heads higher it always leaves a float turnover right at the bottom.
STUDY THE
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INFO ON OUR PREMIER FLOAT CHARTS WEB SITE Want to find stocks like those above? Check Out Our Web Site and Consider subscribing to www.FloatCharts.com. We track Float Turnovers on over 7000 stocks and scan the market for ABC Float Set-Ups, Breakouts and Breakdowns that are poised to make big gains. Our Float Charts Central site is the world's premier site for Float Charts and Float Analysis. We also send out Stock Alerts and a Weekly Newsletter. Check us out! At www.FloatCharts.com we're always on the lookout for trading opportunities. We currently have a Silver ($30 a month) and a Gold ($75 a month) Package. Visit our homepage and see the results of some recent stock picks (near the bottom). You'll be amazed at the power of Float Charts and the returns our stock picks can generate. Our stock picks are based on the ideas found in Steve's book Float Analysis, Powerful Technical Indicators Using Price and Volume (Wiley, 2002). The book's former title was The Precision Profit Float Indicator (Marketplace Books, 2000). |
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