MGIC Investment Corp. (MTG)

[tommiegun54]

MONEY FLOW INDEX DIVERGING FROM MTG RUN-UP

The run-up in MTG that began at around $10.36 on May 2, was accompanied by a DIVERGING MONEY FLOW INDEX(MFI) that declined.

Sometimes, some of charts that I use, will have different reads but, generally the divergence will be small.

During the run-up that started last summer at $5.35, there a few days when the price gapped up. I believe gap ups or down distort the MFI indicator as well.

However, the run-up in MTG, that ended yesterday at $10.90, it was never supported by an increase in the MFI.

I researched everything I could to figure out why the divergence occured.

In Summary:
1. Expect a correction in MTG.
2. It may have topped out for a while.
E. Investors have been taking MONEY out of stock, while the price has been rising.

I really would like to hear from some experts out tbere, who can quantify how it works, the divergence I mean.